Question: You work for an outdoor play structure manufacturing company and are trying to decide between two projects

** Year end cash flow ($ thousands)

Project 0 1 2 IRR

Playhouse -30 15 20 10.4%

Fort -80 39 52 8.6%

You can undertake only one project. If the cost of the capital is 8%, use the incremental IRR rule to make the correct decision.