Sasafras Inc. is trying to decide between two individual investments:

Option 1: $300,000 invested now, and returns $100,300 a year for five years

Option 2: $150,000 invested now, and returns $55,783 a year for five years.

1. Calculate the Internal Rate of Return each option. Break down all steps for both options.
2. Now, assume the required rate of return for similar investments in the capital market is 15%. Which option should Sasafras choose? Break down all steps for both options.
3. Finally, compute NPV of each option, thank rank both according to NPV scaled by the original investment amount (profitability index). Which option should Sasafras Inc invest in if they choose based on this ranking? Break down all steps for both options.