Multiple Choice
Toy Town is considering a new toy with initial costs of $35,900.This toy is expected to produce cash flows of $52,500 in Year 1,$11,300 in Year 2,and nothing thereafter.The discount rate assigned to the toy is 18.7 percent.What is the IRR?
A) 65.28%
B) 24.79%
C) 38.03%
D) 56.65%
E) 20.04%
Correct Answer:
Verified
Correct Answer:
Verified
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