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1) Your company is thinking of the construction of the new building. Building will have the initial cash outlay of= $7 million, and will make cash flows of= $3 million at the ending of year 1, $4 million at the ending of year 2, and $2 million at the ending of years 3 through 5. Determine internal rate of return on this new building? Would you suggest the company proceed with construction? describe why or why not?

2) Assume that a stock’s price is= $48 at the ending of Day 1. If price of stock rise by 30% during Day 2, 20% during Day 3 and then reduces by 5% during Day 4, determine the total percentage change in stock price in these 3 days?

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