Use the Following Information to Answer the Question(s)below

question 4

Multiple Choice

Use the following information to answer the question(s) below.
Frank Dewey Esquire from the firm of Dewey,Cheatum,and Howe,has been offered an upfront retainer of $30,000 to provide legal services over the next 12 months to Taggart Transcontinental.In return for this upfront payment,Taggart Transcontinental would have access to 8 hours of legal services from Frank for each of the next 12 months.Frank's normal billable rate is $250 per hour for legal services.
-Assuming that Dewey's cost of capital is 12% EAR,then the IRR of his retainer offer is closest to:

• A)-39.3%.
• B)-3.3%.
• C)20.0%.
• D)39.3%.

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Definitions:

Under The Age

A phrase used to denote individuals who are younger than a specific age threshold, often in the context of eligibility for benefits or responsibilities.

Lifetime Learning Credit

A tax credit that helps offset the cost of post-secondary education by reducing federal tax owed on a dollar-for-dollar basis.

Per Student

Refers to the allocation of educational resources or benefits measured on an individual student basis.

Federal Poverty Level

A measure used to determine eligibility for certain federal programs and benefits, based on income.