Question: can you please explain this problem step by step? Project X is expected to generate cash flows of $5,000 per year for 5 years and

can you please explain this problem step by step?

Project X is expected to generate cash flows of $5,000 per year for 5 years and its initial cost is $16,000. Project Y is mutually exclusive to Project S. Project Y costs $29,000, and its expected cash flows would be $8,750 per year for 5 years. If both projects have a WACC of 12%, what is the IRR of the better project? 14.05% 14.40% 16.99% 14.85% 15.48%

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