1. Ryder Industries is considering a project that will produce cash inflows of $92,000 a year for five years. What is the internal rate of return if the initial cost of the project is $275,000?

a. 19.67 percent

b. 25.23 percent

c. 17.26 percent

d. 20.02 percent

e. 23.45 percent

2. Charles Henri is considering investing $36,000 in a project that is expected to provide him with cash inflows of $12,000 in each of the first two years and $18,000 for the following year. At a discount rate of zero percent this investment has a net present value of _____, but at the relevant discount rate of 17 percent the project's net present value is _____.

Select one: a. $6,000; -$5,739 b. $6,000; -$3,406 c. $6,000; $1,897 d. $0; -$3,406 e. $0; -$5,739