Soft and Cuddly Is Considering a New Toy That Will

question 79

Multiple Choice

Soft and Cuddly is considering a new toy that will produce the following cash flows. Should the company produce this toy if the firm requires a 15 percent rate of return?

• A) Yes; the project's rate of return is 10.21 percent
• B) Yes; the project's rate of return is 11.47 percent
• C) No; the project's rate of return is 10.21 percent
• D) No; the project's rate of return is 11.47 percent
• E) No; the internal rate of return is zero percent