Velma and Keota (V&K) is a partnership that owns a small company. It is considering two alternative investment opportunities. The first investment opportunity will have a five-year useful life, will cost $17,630.85, and will generate expected cash inflows of $4,300 per year. The second investment is expected to have a useful life of four years, will cost $11,088.34, and will generate expected cash inflows of $3,200 per year. Assume that V&K has the funds available to accept only one of the opportunities.

(PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required Calculate the internal rate of return of each investment opportunity. (Do not round intermediate calculations.) Based on the internal rates of return, which opportunity should V&K select?

59 56 TABLE 1RESENT VALUE OF $1 5 7 89 10061531095351 0043396 0934579 0925926 0917431 09045569070290569996057319 0.357239 0541660 300096 0.56301396190116290 0.793832 0.772103 1545010020792001 076309 09735030 0.700435 503585074751071290606505530669931 07001507061150704 0666 06301700596267 0.61750 03130005470 000 501360 0 10% 129 149 165 0.909091 0.5925570 577193 0.362009 0.526146 0.797194 0.769.460 0.743163 0 0.751315 0.711750 0.074922 0.0.10658 0 061013 0.635515 0592030 0552291 0620921 0.50722 0.519369 0.176113 014 0.561174 0500031 0455587 01012 0 05135 04:24 039963 0353530 02 0.406507 0.1038 0350559 0 30503 0 3600100307500 026295 0.10 030551 091973 0269744 226691 161 OL 0745 36611 OTOS O 5667 03075 0105461 OT 100003 0001 0 150 DOT 04610351103 04631930-141 067300010753 1921 OTTON soorto EDITCODE OLE FOOD 59 TABLE 2 PRESENT VALUE OF AN ANNUITY OES 43 5 9 0961530 004396 003457900259260131 090909 136095 1559510 100001777591111555 69005 Londoor 2.77509 2001316257700 1551 2005 3629093 413361 1100197 2300477623001 5313 5075692 76050 35735 6737145 0979 5725519 016 53152 10 1000 6011 11 TICE CE DO 116