I need help with the solution to end of chapter problem 9.5 fundamentals of healthcare finance second edition by Louis Gapenski.

Thanks

9.5 Capital Healthplans Inc. is evaluating two different methods for providing home health services to its members. Both methods involve contracting out for services, and the health outcomes and revenues are not affected by the method chosen. Therefore, the net cash ows for the decision are all outows. Here are the projected ows:

Year Method A Method B

0 ($300,000) ($120,000)

1 (66,000) (96,000)

2 (66,000) (96,000)

3 (66,000) (96,000)

4 (66,000) (96,000)

5 (66,000) (96,000)

a. What is each alternatives IRR?

b. If the opportunity cost of capital for both methods is 9 percent, which method should be chosen? Why?