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:

Day-Neutral Plant

A plant whose flowering is not controlled by variations in day length that occur with changing seasons. Compare with long-day, short-day, and intermediate-day plants.

Long-Day Plant

A plant that flowers only after being exposed to light periods longer than a certain critical length, often found in summer.

Arabidopsis

A genus of small flowering plants, with Arabidopsis thaliana being a widely used model organism in plant biology and genetics.

Day-Neutral Plant

A plant that flowers regardless of the length of the period of light it is exposed to.