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)	28	19	18	21%
Fort (major project)	80	38	52	7.8%

- You can undertake only one project. If your cost of capital is 9%, use the incremental IRR rule to make the correct decision.-

- The incremental IRR is