Use the Information for the Question(s)below

question 39

Multiple Choice

Use the information for the question(s) below.
Boulderado has come up with a new composite snowboard.Development will take Boulderado four years and cost $250,000 per year,with the first of the four equal investments payable today upon acceptance of the project.Once in production the snowboard is expected to produce annual cash flows of $200,000 each year for 10 years.Boulderado's discount rate is 10%.
-Calculate the IRR for the snowboard project and use it to determine the maximum deviation allowable in the cost of capital estimate that leaves the investment decision unchanged.The maximum deviation allowable is closest to:

• A)11.0%.
• B)0.0%.
• C)2.5%.
• D)1.0%.

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Definitions:

Axial Skeleton

Skull, vertebral column, and rib cage.

Rib

In anatomy, a rib refers to any of the long, curved bones forming the rib cage, which protects the chest cavity and supports the upper body.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone, also known as the collar bone.

Scapula

A flat, triangular bone located on the posterior side of the shoulder, also known as the shoulder blade.