Jasper, Inc., is considering two mutually exclusive investments. Alternative A has a current outlay of

$300,000 and returns $100,300 a year for five years. Alternative B has a current outlay of $150,000

and returns $55,783 a year for five years.

Required:

a. Calculate the internal rate of return for each alternative.

b. Which alternative should Jasper take if the required rate of return for similar projects in the

capital market is 15 percent?

need step by step explanation rather than just solutions