Question: Please answer all aspects of the question. You work for an outdoor play structure manufacturing company and are trying to decide between the following two
Please answer all aspects of the 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 IRR Playhouse (minor project) Fort (major poject) 28.2% 7.8% You can undertake only one project. If your cost of capital is 4%, use the incremental IRR rule to make the correct decision. 0 - 27 - 80 The incremental IRR is %. (Round to two decimal places.) 1 19 38 2 20 52 ... With the incremental IRR at -2.33% and the cost of capital of 4%, you should undertake the (Select from the drop-down menu.)
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