Veronica Marie, an enterprising engineer, wants to be entrepreneurial and invest in one of two businesses. She has compiled necessary cost data as shown in table below. Note: In addition to the data below she estimates that she can sell either business for twice what she pays for it after the project life. Also, she wants to earn a rate of return of 12% on this business investment. Which one should she choose?

Her dad told her that she needs to use the IRR Method to make this comparison?and as always, she is going to follow his advice. Her dad also told her that she can use any appropriate shortcut method that her friends in ISE 311 might have learned about in solving these types of problems.

Data Pilates Business Ice Cream Store Initial Cost $80,000 $120,000 Net Annual Income $12,000 $16,000 Project Life 20 years 20 years