A contract offers $22,000 immediately and $65,000 in seven years (Alternative 1) or $9,000 at the end of each of the next seven years (Alternative 2). If money is worth 9%, which offer is preferable? The preferred alternative is Alternative 1. Alternative 2. A company is considering purchasing equipment costing $130,000. The equipment is expected to reduce costs from year 1 to 2 by $40,000, year 3 to 8 by $20,000, and in year 9 by $6,000. In year 8 9, the equipment can be sold at a salvage value of $22,000. Calculate the internal rate of return (IRR) for this proposal. The internal rate of return is %. (Round to the nearest tenth as needed.)