Following is information on two alternative investments being considered by Chicago Inc. The company requires a 6% return from its investments.

	Investment 1A					Investment 2B
Initial investment		$	(84,000	)			$	(128,000	)
Expected net cash flows in:
Year 1			27,000					63,000
Year 2			37,500					53,000
Year 3			62,500					43,000

Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable.