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)	29	16	19	13.1%
Fort (major poject)	76	38	51	10.6%

You can undertake only one project. If your cost of capital is

5%,

use the incremental IRR rule to make the correct decision.

The incremental IRR is

nothing%.

(Round to two decimal places.)