IRR: Mutually exclusive projects Nile Inc. wants to choose the better of two mutually exclusive projects that expand warehouse capacity. The projects' cash flows are shown in the following table: The cost of capital is 16%. 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? X Data table a. The internal rate of return (IRR) of project X is %. (Round to two decimal places.) in order to copy the contents of the data table below into Is project X acceptable on the basis of IRR? (Select the best answer below.) Yes No Project X $500,000 Project Y $330,000 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.) Yes No (Click on the icon here a spreadsheet.) Initial investment (CF) Year (t) 1 2 3 4 5 Cash inflows (CFt) $100,000 $120,000 $130,000 $210,000 $270,000 $120,000 $140,000 $105,000 $80,000 $60,000