Genuine Products Inc. requires a new machine. Two companies have submitted bids, and you have been assigned to the task of choosing one of the machines. Cash flow analysis indicates the following:

Year	Machine A	Machine B
0	$2,000	$2,000
1	$0	$832
2	$0	$832
3	$0	$832
4	$3,877	$832

What is the internal rate of return for each machine?

A.

IRRa = 18%; IRRb = 24%

B.

IRRa = 18%; IRRb = 16%

C.

IRRa = 24%; IRRb = 26%

D.

IRRa =16%; IRRb = 20%

E.

IRRa = 24%; IRRb = 20%