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: LOADING.... The firm's cost of capital is 14%.

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?

Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project X Project YD Initial investment (CFo) $500,000 $330,000 Year (t) Cash inflows (CFt) 130,000 130,000 $140,000 $210,000 $230,000 140,000 $130,000 $95,000 $80,000 $50,000 4 5 Print Done