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 12%. 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.) Data Table - X Is project X acceptable on the basis of IRR? (Select the best answer below.) No (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Yes The internal rate of return (IRR) of project Yis %. (Round to two decimal places.) Is project Y acceptable on the basis of IRR? (Select the best answer below.) Project X Project Y Initial investment (CF) $500,000 $310,000 Year (t) Cash inflows (CF) 1 $140,000 $130,000 2 $140,000 $100,000 3 $160,000 $105,000 4 $190,000 $90,000 5 $250,000 $40,000 Yes b. Which project is preferred? (Select the best answer below.) Print Done O A. Project Y OB. Project X O C. Neither