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? Data table in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) Project X Project Y Initial investment (CF) $500,000 $290,000 Year (t) Cash inflows (CFt) 1 $130,000 $140,000 2 $120,000 $120,000 3 $130,000 $85,000 4 $200,000 $80,000 5 $240,000 $30,000 Print Done a. The internal rate of return (IRR) of project X is 23.69%. (Round to two decimal places.) Is project X acceptable on the basis of IRR? (Select the best answer below.) Yes No The internal rate of return (IRR) of project Y is 20.43%. (Round to two decimal places.) Is project Y acceptable on the basis of IRR? (Select the best answer below.) Yes No b. Which project is preferred? (Select the best answer below.) A. Neither B. Project Y C. Project X