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QUESTION 17 Toro Corporation is considering a new gadget that will cost $49,100 in startup costs. The gadget is expected to produce cash flows of

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QUESTION 17 Toro Corporation is considering a new gadget that will cost $49,100 in startup costs. The gadget is expected to produce cash flows of $40,500 in Year 1 and $18,600 in Year 2. The gadget will be discontinued after the second year. The discount rate assigned to the gadget is 14.9 percent. Should the gadget be produced? What is the IRR? Yes: 16.82% Yes: 15,33% Yes: 16.09% No: 14.17% No: 15.26%

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