Simmons Investment Group (SIG) used Excel to determine the net present value, the present value index, and the internal rate of return of two investment alternatives. A summary of the results is shown below:

Alternative 1				Alternative 2
Cost of the investment	$	426,000		Cost of the Investment	$	311,000
Net Present Value (NPV)	$	11,120		Net Present Value (NPV)	$	9,450
Present Value Index		1.27		Present Value Index (NPV)		1.32
Internal Rate of Return (IRR)		10%		Internal Rate of Return (IRR)		11%
SIG has $430,000 to invest. Assuming there are no other investment opportunities available, SIG should a. invest in Alternative 1 because it has a higher net present value. b. invest in Alternative 2 because it has a higher internal rate of return. c. invest in Alternative 1 because the cost of the investment is higher. d. invest in Alternative 2 because the cost of the investment is lower.