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 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? \begin{tabular}{ccc} \hline & Project X & Project Y \\ \cline { 2 - 3 } Initial investment (CF0) & $500,000 & $310,000 \\ \hline Year (t) & Cash inflows (CFt) \\ \hline 1 & $140,000 & $150,000 \\ 2 & $120,000 & $110,000 \\ 3 & $150,000 & $85,000 \\ 4 & $190,000 & $50,000 \\ 5 & $240,000 & $60,000 \\ \hline \end{tabular}