July 26, 2020 [CASE STUDY 2 (FIN242) - CHAPTER 12 ( CAPITAL BUDGETING)] QUESTION 2 Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capacity. The relevant cash flows for the projects are shown in the following table. The firm's cost of capital is 15%. Project X Project Y Initial investment RM500,000 RM325,000 1 RM100,000 RM 140,000 2 RM120,000 RM120,000 3 RM150,000 RM95,000 RM190.000 RM70,000 RM250.000 RM50,000 4 5 a) Calculate the IRR to the nearest whole percent for each of the projects. b) Assess the acceptability of each project on the basis of the IRRs found in part a. c) Which project, on this basis, is preferred