Question
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
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%- |
A) What is the Incremental IRR here?
B) Which project should be chosen?
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Financial Management Principles And Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
13th Global Edition
1292222182, 978-1292222189
