ASB Corp. is considering the following two project proposals X and Y. The projected cash flows for project X, and Y are as follows:

End of Period: Project X Project Y

x. y

Year 0 -580 2000

Year 1 -218 -1440

Year 2 438 -720

Year 3 420 -360

Year 4 656 220

year5 -180 744

The effective annual required rate of return for both projects is 32%. If only one of the two projects can be accepted, use the IRR method with incremental project (Y - X) to show which project is preferred. Explain your result. (HINT: Determine whether Project (Y - X) has multiple IRR s.)