BEE Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding thefirm's warehouse capacity. The relevant cash flows for the projects are shown in the followingtable:

Initial investment $500,000 $310,000

Year

1 $100,000 $140,000

2 $140,000 $110,000

3 $160,000 $75,000

4 $210,000 $80,000

5 $250,000 $60,000

a.The internal rate of return(IRR) of project X is _____%?

Is project X acceptable on the basis ofIRR? (Y or N)

The internal rate of return(IRR) of project Y is ______%?

Is project Y acceptable on the basis ofIRR? (Y or N)

b.Which project ispreferred?

A. ProjectY

B. Neither

C. Project X

All the information is there.