Make a comparison between two investment choices, based on the information given below. Investment opportunity one: investing in stock market. Five years ago, SP500 stock index was 1312. Currently, it is 2618.97. What is the average annual rate of return of SP500 stock index in last five years? Investment opportunity two: Five years ago, someone used her $40,000 saving to make a down payment for a townhouse in RTP. The house is a three-bedroom townhouse and sold for $200,000 when she bought it. After paying down payment, she financed the house by borrowing a 30-year mortgage. Mortgage interest rate is 3.625%. Right after closing, she rent out the house for $1,650 per month. In addition to mortgage payment and rent revenue, she listed the following information so as to figure out investment return:

1. HOA fee is $75 per month and due at end of each year

2. Property tax and insurance together are 3% of house value

3. She has to pay 10% of rent revenue for an agent who manages her renting regularly

4. Her personal income tax rate is 20%. While rent revenue is taxable, the mortgage interest is tax deductiable. She has to make the mortgage amortization table to figure out how much interest she paid each year

5. In last five years, the market value of the house has increased by 3.87% per year

6. If she wants to sell the house today, the total transactio cost will be 5% of selling price

Given the above information, please calculate the internal rate of return (IRR) of this investment in house. SHOW CALCULATIONS IN EXCEL ONLY