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 14% 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.) Is project X acceptable on the basis of IRR? (Select the best answer below.) - Data Table O Yes No The internal rate of return (IRR) of project Y is %. (Round to two decimal places.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Is project Y acceptable on the basis of IRR? (Select the best answer below.) Project X $500,000 Project Y $320,000 Yes Initial investment (CF) Year (t) O No b. Which project is preferred? (Select the best answer below.) 1 2 3 Cash inflows (CF) $110,000 $140,000 $160,000 $140,000 $160,000 $85,000 $180,000 $50,000 $270,000 $50,000 O A. Project Y 4 O B. Project X 5 O C. Neither Print Done