IRR: Mutually exclusive projects Nile Inc

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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 capital is 13%. 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 1%. (Round to two decimal places.) is project X acceptable on the basis of IRR? (Select the best answer below.) No Yes The internal rate of return (IRR) of project is %. (Round to two decimal places.) is project Y acceptable on the basis of IRR? (Select the best answer below.) No Yes - X b. Which project is preferred? Data table O A. Project Y B. Neither OC. Project X (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CF) Year (1) Project X Project Y $500,000 $310.000 Cash inflows (CF) $100,000 $130.000 $130,000 $100.000 $140,000 $105.000 $170,000 $80.000 $260,000 S60.000 1 2 3 4 5 WN Next NPV Calculate the net present value (NPV) for a 25-year project with an initial investment of $35.000 and a cash inflow of $5,000 per year. The cost of capital is 139 Comment on the acceptability of the project. The project's net present value is s (Round to the nearest cent) Is the project acceptable? (Select the best answer below.) No ?? Yes