IRRMutually 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: B. The firm's cost of capital is 18%. 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? Data table (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) a. The internal rate of return (IRR) of project X is %. (Round to two decimal places.) Year (0) Project X Project Y Initial investment (CFO) $500,000 $320,000 Cash inflows (CFt) 1 $140,000 $140,000 2 $130,000 $140,000 3 $160,000 $95,000 4 $210,000 $50,000 5 $260,000 $40,000 Internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. 9 - Data table The project's IRR 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.) Initial investment (CF) Year (1) 1 $120,000 Cash inflows (CF) $25,000 $35,000 $35,000 $35,000 $25,000 2 3 4 5 NPV and EVA A project cost $1.6 million up front and will generate cash flows in perpetuity of $280,000. The firm's cost of capital is 14%. a. Calculate the project's NPV. b. Calculate the annual EVA in a typical year. c. Calculate the overall project EVA. a. The project's NPV is $ (Round to the nearest dollar.)