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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 ($thousands) Project_____0___1_2 _____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 projects) -25(0) 15(1) 19(2) 22.2%(IRR) first project for the years -75(0) 38(1) 51(2) 11.6%(IRR) for second project You can undertake only one project. If your cost of capital is 8%, use the incremental IRR rule to make the correct decision.

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