Austin Company is investigating four different investment opportunities. Information on the four projects under study is given below:

Project Number

	1			2			3			4
Investment required	$	(740,000	)	$	(640,000	)	$	(590,000	)	$	(540,000	)
Present value of cash inflows at a 12% discount rate		766,000			705,000			614,800			576,970
Net present value	$	26,000		$	65,000		$	24,800		$	36,970
Life of the project		9 years			14 years			10 years			3 years
Internal rate of return		12.92%			13.95%			13.02%			15.94%

Because the company