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:

Project X		Project Y
Initial investment (CF 0CF0)	$500,000		$300,000
Year (t)	Cash inflows (CF Subscript tCFt)
1	$130,000		$130,000
2	$130,000		$140,000
3	$160,000		$115,000
4	$170,000		$50,000
5	$230,000		$30,000

The firm's cost of capital is 16%.

a.The internal rate of return (IRR) of project X is ______%. (Round to two decimal places.)

Is project X acceptable on the basis of IRR? (Select the best answer below.)

A. No

B. Yes

The internal rate of return (IRR) of project Y is ______%. (Round to two decimal places.)

Is project Y acceptable on the basis of IRR? (Select the best answer below.)

A. No

B. Yes

b.Which project is preferred? (Select the best answer below.)

A. Project Y

B. Neither

C. Project X