Use the Following Information to Answer the Question(s)below

question 23

Multiple Choice

Use the following information to answer the question(s) below.
Frank Dewey Esquire from the firm of Dewey,Cheatum,and Howe,has been offered an upfront retainer of $30,000 to provide legal services over the next 12 months to Taggart Transcontinental.In return for this upfront payment,Taggart Transcontinental would have access to 8 hours of legal services from Frank for each of the next 12 months.Frank's normal billable rate is $250 per hour for legal services.
-Assuming that Dewey's cost of capital is 12% EAR,then the number of potential IRRs that exist for this problem is equal to:

• A)0.
• B)1.
• C)2.
• D)12.

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Definitions:

Government Rules

Regulations and guidelines established by government authorities to govern behavior, enforce standards, and protect the public interest.

Economies Of Scale

The cost per output unit tends to decrease as the operational scale increases, providing companies with financial advantages due to their size.

Competitively Organized Industry

An industry structure where numerous firms compete with each other to sell similar but not identical products.

Collusively

In a manner where firms in an industry work together secretly to set prices or otherwise manipulate market conditions to their advantage.