Toy Town Is Considering a New Toy with Initial Costs

question 61

Multiple Choice

Toy Town is considering a new toy with initial costs of $35,900.This toy is expected to produce cash flows of $52,500 in Year 1,$11,300 in Year 2,and nothing thereafter.The discount rate assigned to the toy is 18.7 percent.What is the IRR?

• A)65.28%
• B)24.79%
• C)38.03%
• D)56.65%
• E)20.04%

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Definitions:

Societies

Groups of individuals living together in organized communities with shared laws, traditions, and values.

Results

Outcomes or outputs derived from specific actions, processes, or behaviors.

Stereotypes

Widely held but simplified and generalized beliefs about a particular group of people or things.

Gender

A social construct that refers to roles, behaviors, activities, and attributes that a given society considers appropriate for men, women, and other gender identities.