Use the Information for the Question(s) Below

question 34

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%

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Definitions:

Antibiotic Resistant

Refers to bacteria that have evolved the ability to survive and grow in the presence of antibiotics that were originally effective against them.

Directional Selection

A mode of natural selection where an extreme phenotype is favored over other phenotypes, causing the allele frequency to shift over time.

Bacterial Population

A bacterial population consists of a group of bacteria residing in a specific area, which can exhibit growth, mutual interactions, and adaptation to their environment.

Mutation

A change in the DNA sequence within a gene or chromosome of an organism leading to the creation of a new character or trait not found in the parental type.