Exercise $10-10$A $($Algo$)$ Using the internal rate of return to compare investment opportunities LO $10-3$

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 $$13,120\mathrm{.}63,$ and will generate expected cash inflows of $$3,200$ per year. The second investment is expected to have a useful life of four years, will cost $$8,942\mathrm{.}74,$ and will generate expected cash inflows of $$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

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?

$\backslash$table$[[,$Internal Rate of Return$],[$a$.$ First investment,$\%,],[$a$.$ Second investment,$\%,]]$