Find IRR? You work for an outdoor play structure manufacturing company and are trying to decide between the following two$$ projects:

$$Year$-$End Cash Flows$($$ thousands$)$

Project

$0$

$1$

$2$

IRR

Playhouse$($minor project$)$

negative $27$

$18$

$18$

$21\mathrm{.}5\%$

Fort$($major poject$)$

negative $77$

$39$

$50$

nbsp $9\mathrm{.}8\%$

You can undertake only one project. If your cost of capital is $7\%,$ use the incremental IRR rule to make the correct decision.