Nile Inc. wants to choose the better of two mutually exclusive projects that expand warehouse capacity. The projects' cash flows are shown in the following table:

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. The cost of capital is

14%.

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?

i Data Table - in order to copy the contents of the data table below (Click on the icon here e into a spreadsheet.) Initial investment (CF.) Year (t) 1 Project X Project Y $500,000 $360,000 Cash inflows (CF) $100,000 $140,000 $130,000 $140,000 $150,000 $105,000 $180,000 $70,000 $250,000 $70,000 2 3 4 5 Print Done