Use the Information for the Question(s)below

question 86

Multiple Choice

Use the information for the question(s) below.
Larry the Cucumber has been offered $14 million to star in the lead role of the next three Larry Boy adventure movies.If Larry takes this offer,he will have to forgo acting in other Veggie movies that would pay him $5 million at the end of each of the next three years.Assume Larry's personal cost of capital is 10% per year.
-The IRR for Larry's three-movie deal offer is closest to:

• A)3.5%.
• B)1.6%.
• C)-3.5%.
• D)-1.6%.

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Definitions:

Language

A system of communication used by a particular community or country, involving the use of words in a structured and conventional way.

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Varieties or styles of speech or oral communication, as opposed to written forms.

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Rarely Lie

The tendency to speak the truth or present facts most of the time, with falsehoods being an exception.