PLEASE BE DESCRIPTIVE AND SHOW ALL WORK (INCLUDING FORMULAS).

IRR: Mutually exclusive projects Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firm's warehouse capac- ity. The relevant cash flows for the projects are shown in the following table. The firm's cost of capital is 15%. P10-16 Project X Project Y Initial investment (CFo) -$325,000 -$500,000 Year (t) Cash inflows (CF) $100,000 $140,000 1 2 120,000 120,000 150,000 95,000 190,000 70,000 4 250,000 5 50,000 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 IRR8 found in part a c. Which project, on this basis, is preferred