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

question 4

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 IRR of his retainer offer is closest to:

• A)-39.3%.
• B)-3.3%.
• C)20.0%.
• D)39.3%.

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Definitions:

Probability

The quantification of the probability that an event will take place, represented by a numeric value ranging from 0 to 1.

IUPAC Name

The methodical approach to naming chemical compounds, as endorsed by the International Union of Pure and Applied Chemistry.

Succinic Acid

A dicarboxylic acid with the molecular formula C4H6O4, used in the manufacture of dyes, perfumes, and pharmaceuticals.

Structure

The arrangement of atoms in a molecule or the manner in which atoms are bonded to form a molecule, which dictates the molecule’s properties and reactivity.