A company is considering two investment options:

• Option 1: An investment of $28,000 today, and another investment of $12,000 in year 3, with returns of $18,000 in year 2, $8,000 in year 3, and $30,000 in year 5.
• Option 2: An investment of $42,000 today, and another investment of $7,000 in year 4, with returns of $17,000 in year 1, $18,000 in year 3, and $30,000 in year 5.

1. Calculate the internal rate of return for each option. (Show ALL CF entries in the table below.)
2. Which investment option should the company select? Explain your answer.