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 17%. 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.) - X Data table Is project X acceptable on the basis of IRR? (Select the best answer below.) O Yes O No (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The internal rate of return (IRR) of project Y is %. (Round to two decimal places.) Project X Project Y Initial investment (CF) $500,000 $330,000 Is project Y acceptable on the basis of IRR? (Select the best answer below.) Year (t) 1 $130,000 O No 2 $120,000 O Yes 3 $170,000 4 $180,000 b. Which project is preferred? (Select the best answer below.) 5 $240,000 O A. Project Y OB. Neither O C. Project X Print Cash inflows (CF) Done $140,000 $140,000 $85,000 $80,000 $40,000