Use the Information for the Question(s)below

question 32

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.
-Larry should:

• A)reject the offer because the NPV < 0.
• B)accept the offer even though the IRR < 10%,because the NPV > 0.
• C)reject the offer because the IRR < 10%.
• D)accept the offer because the IRR > 0%.

---

Definitions:

Morbidity

A term referring to the state of being diseased or unhealthy within a population; often used to describe the prevalence of illnesses or medical conditions.

Uniform

A distinct outfit meant to be worn by members of the same organization or institution, promoting a sense of identity and unity.

Climacteric

A phase in the aging process of humans, marked by hormonal changes that occur in women (menopause) and may occur in men (andropause).

Stagnation

A period of inactivity or lack of growth and development, often used in psychological contexts to describe individuals who fail to achieve their desired future.