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Please solve all the questions. IRR: Mutually exclusive projects Nile Inc wants to choose the better of two mutually exclusive projects that expand warehouse capacity.
Please solve all the questions.
IRR: Mutually exclusive projects 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 The cost of capdalis 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) Is project X acceptable on the basis of IRR? (Select the best answer below) No i Data Table Yes The internal rate of return (IRR) of project 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 Is project Y acceptable on the basis of IRR? (Select the best answer below) Project X $500,000 Project Y $310 000 Yes b. Which project is preferred? (Select the best answer below) Initial investment (CF) Year (0) 1 2 3 4 4 5 Cash inflows (CF) $120.000 S150,000 $160 000 $140,000 5140 000 $85 000 $200,000 560 000 $260,000 $40.000 O A Project X OB Project Y OC. Neither Print Done Click to select your answer(s)Step by Step Solution
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