IRR-Mutually exclusive projects Bell 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: EB. The firm's cost of capital is 15%.

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?

IRR-Mutually exclusive projects Bell Manufacturing is attempting to choose the botter 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: The firm's cost of capital is 15% 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? 2. The internal rate of return (IRR) of project X is % (Round to two decimal placen.) is project X acceptable on the basis of IRR? (Select the best answer below) Data table O NO Yes (Click on the icon located on the top-right comer of the data table below in order to The internal rate of return (IRR) of project is % (Round to two decimal places.) copy its contents into a spreadsheet.) is project acceptable on the basis of IRR? (Select the best answer below) Project Project Y Initial investment (CF) $500,000 $350,000 Year (0) Cash inflows (CF) Yes $100,000 $160,000 $130,000 $100,000 b. Which project is preferred? (Select the best answer below) $105,000 $170,000 $230,000 $70,000 A Project B. Project 1 2 3 4 5 $160,000 $80.000 OC. Neither