Question: 1. (5 points) ASB Corp. is considering the following two project proposals X and Y. The projected cash flows for project X, and Y are

1. (5 points) ASB Corp. is considering the following two project proposals X and Y. The projected cash flows for project X, and Y are as follows: End of Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Period: Project X -580 -218 438 420 656 220 Project Y 2000 -1440 -720 -360 -180 744 The effective annual required rate of return for both projects is 32%. Only one of the two projects can be accepted, Use the IRR method with incremental project (X-Y) to show which project is preferred. Explain your result. (HINT: First determine whether Project (X-Y) has multiple IRR's)

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