IRR Mutually exclusive projects 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: . The firm's cost of capital is 12% 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? 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.) O Yes 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 S500,000 Project Y $270,000 O No The intemal 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.) O Yes Initial investment (CFo) Year (t) Cash inflows (CF) $100,000 $150,000 $150,000 $170,000 $260,000 $120,000 $100,000 $85,000 $70,000 $30,000 O No b. Which project is preferred? (Select the best answer below.) Print Done Click to select your answerfs) Common stock value-Variable growth Lawrence Industries' most recent annual dividend was $2.13 per share (D,-$2.13), and the firm's required return is 14%. Find the market value of Lawrence's shares when dividends are expected to grow at 25% annually for 3 years, followed by a 6% constant annual growth rate in years 4 to infinity The market value of Lawrence's shares is$ (Round to the nearest ent.) Yield to maturity The relationship between a bond's yield to maturity and coupon interest rate can be used to predict its pricing level. For the bond listed below, state whether the price of the bond will be at a premium to par, at par, or at a discount to par. Coupon interest rate 9% Yield to maturity 7% What is the price of the bond in relation to its par value? (Select the best answer below.) OA. The bond sells at par O B. The bond sells at a discount to par. O C. The bond sells at a premium to par