IRRl-Mutually exclusive projectsBell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table:

Initial investment	500000	370000
Year
1	110000	140000
2	160000	140000
3	160000	105000
4	190000	90000
5	260000	70000

The firm's cost of capital is 14%.

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.)Yes or No

The internal rate of return (IRR) of project Y is ___%. (Round to two decimal places.)

Is project Y acceptable on the basis of IRR? (Select the best answer below.) Yes or No

b.Which project is preferred? (Select the best answer below.)

A.Project Upper Y

B.Project Upper X

C.Neither