You are a senior manager at Nittany Aircraft and have been authorized to spend up to $550,000 for projects. The three projects you are considering have the following characteristics:

Project A: Initial investment of $420,000. Cash flow of $195,000 at year 1 and $235,000 at year 2. This is a plant expansion project, where the required rate of return is 13 %.

Project B: Initial investment of $210,000. Cash flow of $180,000 at year 1 and $140,000 at year 2. This is a new product development project, where the required rate of return is 16 %.

Project C: Initial investment of $165,000. Cash flow of $145,000 at year 1 and $90,000 at year 2. This is a market expansion project, where the required rate of return is 16 %.

Assume the corporate discount rate is 17 %.

What is the incremental IRR (aka, crossover point) between Project B & Project C?