Use the Information for the Question(s)below

question 86

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.
-The IRR for Larry's three-movie deal offer is closest to:

• A)3.5%.
• B)1.6%.
• C)-3.5%.
• D)-1.6%.

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Definitions:

Defense Mechanisms

Psychological strategies employed unconsciously to protect an individual from anxiety and perceived threats to self-esteem or self-concept.

Compensation

A compromise mechanism in which an individual attempts to make up for a negative situation by devoting himself or herself to another pursuit with increased vigor.

Conflict Management Techniques

Strategies and practices used to address and resolve disagreements and disputes in a constructive manner.

Nonaction

Doing nothing in hopes that a conflict will disappear.