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 three-year useful life, will cost $10,267.84, and will generate expected cash inflows of $3,700 per year. The second investment is expected to have a useful life of four years, will cost $8,200.84, and will generate expected cash inflows of $2,700 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.