projects tor expanding the tirm's production capacity The relevant cash flows tor the projects are shown in the following table. The firm's cost ot capital is 15 percent. Project A Initial cash outflow (CFO ) Year (t) 1 2 3 4 S S550:OOO cash Intlows (CFO $110,000 132,000 165,000 209,000 275,000 S154,ooo 132,000 105,000 77,000 55,000 Project a $358,000 a. Calculate the IRR tor each ot the projects. b. Assess the acceptability ot each project based on the IRRs found in part (a) Which project is preferred, based on the IRRs found in part (a)? A8-10. a. Project A B IRR IS. 17.3% b. With a cost ot capital ot 15%, both projects are acceptable. c. Project B has a higher IRRI and is preferred to Project A, based on the IRR criteriorL P8-LL_ Contract Manufacturing, In. : is considering two alternative