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 13%. 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? Project X Project Y Initial investment (CF) $400,000 $340,000 Year (t) Cash inflows (CF) 1 $100,000 $150,000 2 $160,000 $140,000 3 $150,000 $105,000 4 $180,000 $80,000 5 $240,000 $40,000