Velma and Keota (V&K) is a partnership that is considering two alternative investment opportunities. The first investment opportunity will have a five-year useful life, will cost $11,574.74, and will generate expected cash inflows of $2,600 per year. The second investment is expected to have a useful life of five years, will cost $9,269.32, and will generate expected cash inflows of $2,700 per year. Assume that V&K has the funds available to accept only one of the opportunities. (PV of $1 and PVA of $1)

Note: Use appropriate factor(s) from the tables provided.

Required

Calculate the internal rate of return of each investment opportunity.

Note: Do not round intermediate calculations.

Based on the internal rates of return, which opportunity should V&K select?