principle of managerial finance

510 PART FIVE Long Term Investment Decisions P10-16 TRR: Mutually exclusive projects Ocean Pacific Restaurant is evaluating two ally exclusive projects for expanding the seating capacity at the restaurant. The lowing table shows the relevant cash flows for the projects. The firm cost of Initial investment (CF) Year in Project Project B -5980,000 -$363.000 Cash inflows (CF) $150,000 $110,000 170,000 98.000 220,000 93,000 270,000 82.000 340,000 67,000 a. Calculate the IRR to the nearest whole percent for each of the projects. b. Assess the acceptability of each project based on the IRRs found in part d. c. Which project, on this basis, is preferred