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: 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? 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.) - X Data Table No Yes The internal rate of return (IRR) of project Yis%. (Round to two decimal places.) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Is project Y acceptable on the basis of IRR? (Select the best answer below.) Yes Initial investment (CF) Year (t) 0 No Project X Project Y $500,000 $280,000 Cash inflows (CFt) $130,000 $130,000 $140,000 $140,000 S130,000 $75,000 $200.000 $50,000 $240,000 $30,000 1 2 3 4 b. Which project is preferred? (Select the best answer below.) 5 O A. Neither OB. Project Y OC. Project X Print Done