Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firms warehouse capacity. The relevant cash flows for the projects are shown in the following table. The firms cost of capital is 15%.

	Project X ($)	Project Y ($)
Initial Investment	500,000	325,000
	Cash Flows
Year	Project X ($)	Project Y ($)
1	100,000	140,000
2	120,000	120,000
3	150,000	95,000
4	190,000	70,000
5	250,000	50,000

1. Develop equation to calculate Internal Rate of Return for each project.

2. Calculate the Internal Rate of Return for each projects using IRR calculator included on the learning module.

3. Which project, on this basis ,is preferred?

Show calculations for understanding and for LIKE.