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Velma and Keota (V&K) is a partnership that is considering two alternative investment opportunities. The first investment opportunity will have a three-year useful life, will
Velma and Keota (V\&K) is a partnership that is considering two alternative investment opportunities. The first investment opportunity will have a three-year useful life, will cost $5,266.20, and will generate expected cash inflows of $2,500 per year. The second investment is expected to have a useful life of three years, will cost $8,534.38, and will generate expected cash inflows of $3,800 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 a. Calculate the internal rate of return of each investment opportunity. Note: Do not round intermediate calculations. b. Based on the internal rates of return, which opportunity should V\&K select
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