Internal Rate of Return Method-Two Projects Strahn Foods Inc. is considering two possible investments: a delivery truck or a bagging machine. The delivery truck would cost $40,710.88 and could be used to deliver an additional 44,000 bags of taquitos chips per year. Each bag of chips can be sold for a contribution margin of $0.38. The delivery truck operating expenses, excluding depreciation, are $0.52 per mile for 15,000 miles per year. The bagging machine would replace an old bagging machine, and its net investment cost would be $46,800.00. The new machine would require three fewer hours of direct labor per day. Direct labor is $15 per hour. There are 250 operating days in the year. Both the truck and the bagging machine are estimated to have seven-year lives. The minimum rate of return is 14%. However, Strahn Foods has funds to invest in only one of the projects. Present Value of an Annuity of $1 at Compound Interest a. Compute the internal rate of return for each investment. Use the above table of present value of an annuity of $1. Enter the present value factor to three decimal places. b. Which of the following should be included in a memo to management regarding the recommendation about the two projects