IRR: Mutually exclusive projects Nile Inc. wants to choose the better of two mutually exclusive projects...

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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 show in the following table: The cost of capital is 17%. 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? Data table a. The internal rate of return (IRI (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Project X Initial investment (CF). $500,000 Project Y $310,000 Year (t) Cash inflows (CF) 1 $120,000 $140,000 - 2 3 4 5 $120,000 $120,000 $150,000 $75,000 $180,000 $50,000 $250,000 $70,000 - X 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 show in the following table: The cost of capital is 17%. 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? Data table a. The internal rate of return (IRI (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Project X Initial investment (CF). $500,000 Project Y $310,000 Year (t) Cash inflows (CF) 1 $120,000 $140,000 - 2 3 4 5 $120,000 $120,000 $150,000 $75,000 $180,000 $50,000 $250,000 $70,000 - X