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IRR-Mutually exclusive projects Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table. The firm's cost of capital is 13%. a. Calculate the IRR for each of the projects. Assess the acceptability of each project on the basis of the IRRs. b. Which project is preferred? a. The internal rate of return (IRR) of project X is %. (Round to two decimal places.) project X acceptable on the basis of IRR? (Select the best answer below.) No Yes PM The internal rate of return (IRR) of project is % (Round to two decimal places.) is project Yacceptable on the basis of IRR? (Select the best answer below) No Yes b. Which project is preferred? (Select the best answer below.) 6 7 A ProjectX OB Project OC. Nathar of the projects. Assess the acceptability of each project on the basis of the IRRs. Data Table X (IRR) e basis (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) RR) of pr the basis Project X Project Y Initial investment (CF) $500,000 $300,000 Year (1) Cash inflows (CF) 1 $120,000 $130,000 2 $160,000 $100,000 3 $160,000 $115,000 $170,000 $60,000 5 $240,000 $40,000 rred? (Seld Print Done swers)

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