1. Portfolio Weights An investor owns $21,000 of Adobe Systems stock, $24,000 of Dow Chemical, and $34,000 of Office Depot. What are the portfolio weights of each stock?

Adobe System = 0.27, Dow Chemical = 0.33, Office Depot = 0.40

Adobe System = 0.30, Dow Chemical = 0.27, Office Depot = 0.43

Adobe System = 0.27, Dow Chemical = 0.30, Office Depot = 0.43

Adobe System = 0.33, Dow Chemical = 0.33, Office Depot = 0.33

2. Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. Year 0 1 2 3 4 5 Cash flows -$1,100 $325 $325 $325 $325 $325