Hosier and Wogan (H&W) is a partnership that owns a small company. It is considering two alternative investment opportunities. The first investment opportunity will have a four-year useful life, will cost $15,971.54, and will generate expected cash inflows of $4,400 per year. The second investment is expected to have a useful life of three years, will cost $6,288.49, and will generate expected cash inflows of $2,800 per year. Assume that H&W has the funds available to accept only one of the opportunities. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required

a.	Calculate the internal rate of return of each investment opportunity.

b.	Based on the internal rates of return, which opportunity should H&W select?