Compare the two alternatives below. Calculate the after-tax Internal Rate of Return (IRR) for both alternatives when the tax rate is 40%. Write down the Internal Rate of Return for the more attractive alternative.

The usable life of Alternative A is 5 years and requires a capital investment of 213,000 TL. According to the straight-line depreciation method, the book value at the end of life is 0 TL. The end-of-life market value of this investment is 0 TL and the annual net return of the investment is 75,000 TL.

The usable life of Alternative B is 5 years and requires a capital investment of 247,000 TL. According to the straight-line depreciation method, the book value at the end of life is 0 TL. The end-of-life market value of this investment is 0 TL and the annual net return of the investment is 85,000 TL.