The document contains financial data for a business over 5 years including initial costs, net income each year, and internal rates of return. It lists the cost as $70,000 and net incomes of $12,000, $15,000, $18,000, $21,000, and $26,000 for years 1 through 5. The internal rates of return after 5, 4, and 2 years were 9%, -2%, and an estimated -44% respectively.

1. A
Data
-70,000
12,000
15,000
18,000
21,000
26,000
9%
-2%
-44%

2. B
Description
Initial cost of a business
Net income for the first year
Net income for the second year
Net income for the third year
Net income for the fourth year
Net income for the fifth year
Internal rate of return after five years
Investment's internal rate of return after four years (-2%)
To calculate the internal rate of return after two years, you need to include a guess(44%)