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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

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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 a 9 percent rate of return? Year Cash Flow 0 -$40,000 1 20,000 2. 25,000 Yes; the project's rate of return is 11.1 percent No; the project's rate of return is 7.9 percent No: the project's rate of return is 12.5 percent No; the internal rate of return is zero percent Yes: the project's rate of return is 12.5 percent

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