Soft and Cuddly is considering a new toy that will produce the following cash flows.Should the company produce this toy based on IRR if the firm requires a rate of return of 17.5 percent?
A)Yes, because the project's rate of return is 16.45 percent
B)Yes, because the project's rate of return is 11.47 percent
C)No, because the project's rate of return is 16.45 percent
D)No, because the project's rate of return is 11.47 percent
E)No, because the internal rate of return is zero percent

Question

Soft and Cuddly is considering a new toy that will produce the following cash flows.Should the company produce this toy based on IRR if the firm requires a rate of return of 17.5 percent? 
A)Yes, because the project's rate of return is 16.45 percent 
B)Yes, because the project's rate of return is 11.47 percent 
C)No, because the project's rate of return is 16.45 percent 
D)No, because the project's rate of return is 11.47 percent 
E)No, because the internal rate of return is zero percent

Quizplus · Accepted Answer

The Answer of Soft and Cuddly is considering a new toy that will produce the following cash flows.Should the company produce this toy based on IRR if the firm requires a rate of return of 17.5 percent? 
A)Yes, because the project's rate of return is 16.45 percent 
B)Yes, because the project's rate of return is 11.47 percent 
C)No, because the project's rate of return is 16.45 percent 
D)No, because the project's rate of return is 11.47 percent 
E)No, because the internal rate of return is zero percent

Soft and Cuddly Is Considering a New Toy That Will