Considering the two investment opportunities

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Kevin has $100,000 and is considering the following two investment opportunities. Investment A requires an initial investment of $100,000 and promises to return an annual amount of $23,740 for 5 years. Investment B requires an initial investment of $90,000 and is expected to return $21,150 every year for 5 years. If the Kevin’s MARR is 5% per year compounded annually, which investment should Kevin choose, if any. Solve using the internal rate of return approach. (Note: You must solve for IRR rounded to the nearest whole %.)

Reference no: EM131173951

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