Soft and Cuddly is considering a new toy that will produce the following cash flows. Should the company produce this toy if the firm requires a 15 percent rate of return?
A) Yes; the project's rate of return is 10.21 percent
B) Yes; the project's rate of return is 11.47 percent
C) No; the project's rate of return is 10.21 percent
D) No; the project's rate of return is 11.47 percent
E) No; 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 if the firm requires a 15 percent rate of return? 
A) Yes; the project's rate of return is 10.21 percent 
B) Yes; the project's rate of return is 11.47 percent 
C) No; the project's rate of return is 10.21 percent 
D) No; the project's rate of return is 11.47 percent 
E) No; 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 if the firm requires a 15 percent rate of return? 
A) Yes; the project's rate of return is 10.21 percent 
B) Yes; the project's rate of return is 11.47 percent 
C) No; the project's rate of return is 10.21 percent 
D) No; the project's rate of return is 11.47 percent 
E) No; the internal rate of return is zero percent

Soft and Cuddly Is Considering a New Toy That Will