You work for an outdoor play structure manufacturing company and are trying to decide between the...

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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jeff jeffy answered 1 year ago

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