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Al's Toy Barn is considering a new toy that will produce the following cash flows. Should the company produce this toy if the firm requires
Al's Toy Barn is considering a new toy that will produce the following cash flows. Should the company produce this toy if the firm requires a 10 percent rate of return? Year Cash Flow 0 -$40,000 1 20.000 2 25,000 No: the internal rate of return is zero percent No: the project's rate of return is 12.5 percent No; the project's internal rate of return is 7.9%. None of the answers is correct. Yes; the project's rate of return is 11.1 percent
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