The CEO of Delta Manufacturing must choose between two investment projects, Project X and Project Y, which are mutually exclusive.

Project Cash Flows and IRR:

Project	C0 ($ thousands)	C1 ($ thousands)	C2 ($ thousands)	IRR (%)
X	-75	35	45	21.15
Y	-85	50	40	18.65

The company's cost of capital is 11%.

Requirements:

1. Explain why IRR might not be the correct metric to choose the best project.
2. Calculate the Net Present Value (NPV) of each project.
3. Determine which project should be chosen based on NPV.
4. Discuss any other factors that might influence the decision beyond IRR and NPV.