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 $19,680.96, and will generate expected cash inflows of $4,800 per year. The second investment is expected to have a useful life of three years, will cost $12,885.48, and will generate expected cash inflows of $5,000 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 a. Calculate the internal rate of return of each investment opportunity. (Do not round intermediate calculations.) b. Based on the internal rates of return, which opportunity should V&K select? Internal Rate of Return First investment Second investment VAK helect the Exercise 16-15 Computing the payback period and unadjusted rate of return for the same Investment opportunity LO 16-4 Garrison Rentals can purchase a van that costs $54,000, it has an expected useful life of three years and no salvage value. Garrison uses straight-line depreciation. Expected revenue is $36.000 per year. Assume that depreciation is the only expense associated with this investment Required a. Determine the payback period. (Round your answer to 1 decimal place.) b. Determine the unadjusted rate of return based on the average cost of the investment (Round your answer to 1 decimal place. (.e.. 234 should be entered as 23.4).) a Payback period b. Unadjusted rate of return