1. You Corp is considering a new inventory system that will cost $850,000. The system is expected to generate positive cash flows over the next four years in the amounts of $250,000 in year one, $340,000 in year two, $175,000 in year three, and $280,000 in year four. You Corp.s required rate of return is 12%. What is the modified internal rate of return of this project?

   		10.20%
   		11.23%
   		11.16%
   		12.34%

2. You Corp
   Income Statement 2020
   Sales	12,000,000
   Net Income	960,000
   You Corp
   Balance Sheet 2020
   Current Assets	3,000,000
   Net Fixed Assets	4,000,000
   Total Assets	7,000,000
   Accounts Payable	1,200,000
   Accrued Expenses	850,000
   Notes Payable	500,000
   Current Liabilities	2,550,000
   Long-term Debt	2,500,000
   Total Liabilities	5,050,000
   Common Stock	500,000
   Paid in Capital	350,000
   Retained Earnings	1,100,000
   Total Equity	1,950,000
   Total Liabilities and Equity	7,000,000

   Using the Percent of Sales Method to forecast You Corp.'s financing requirement for 2021. Assume: Sales will increase by 25% and Dividends are 40% of net income

   What is the Discretionary Financing Needed (DFN)?

   		$725,500
   		$695,500
   		$757,500
   		$717, 500