1. Assume you buy 100 shares of stock at a price of $63.75 per share and incur brokerage fees of $200. You own the stock for 5 years and receive dividends of 50 cents per share at the end of each quarter. Immediately after receiving the 20th quarterly dividend, you sell the stock at a price of $48.63 per share and incur brokerage fees of $200. Calculate your rate of return. (IRR)

2. You own a thriving restaurant but want to change careers. Your brother offers to buy the business with the following monthly payments: $2,750 at the end of each month for 4 years, followed by $3,000 at the end of each month for 3 years. Assuming that you can earn 9% compounded monthly, what is the equivalent cash price of your brother’s offer? (NPV)