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You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects Year-End Cash Flows (S thousands) Project
You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects Year-End Cash Flows (S thousands) Project 0 1 2 IRR Playhouse (minor project) 19 18 15.3% Fort (major pool - 75 39 52 13.2% -30 You can undertake only one project. If your cost of capital is 8% use the incremental IRR rule to make the correct decision The incremental IRR 1% (Round to two decimal plans The incremental IRRI: % (Round to two decimal places) With the incremental IRR at 1194% and the cost of capital of 8%, you should undertake the (Select from the drop-down menu
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