Example:

You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects: Year-End Cash Flows (S thousands) Project Playhouse (minor project) Fort (major poject) - 29 -76 17 A0 2 19 52 IRR 15.4% 13.1% You can undertake only one project. If your cost of capital is 7%, use the incremental IRR rule to make the correct decision. The incremental IRR is 96. (Round to two decimal places.)