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WULJLIUILTICIP Glossimer Thread Company is evaluating an investment that will cost $760,000 and will yield cash inflows of $255,000 in the first year, $325,000 in

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WULJLIUILTICIP Glossimer Thread Company is evaluating an investment that will cost $760,000 and will yield cash inflows of $255,000 in the first year, $325,000 in the second year, and $380,000 in the third and the final year. Use the table below and determine the internal rate of return. Present value of $1: 8% 9% 1 0.926 0.917 2 0.857 0.842 3 0.794 0.772 4 0.735 0.708 5 0.681 0.65 10% 0.909 0.826 0.751 0.683 0.621 11% 0.901 0.812 0.731 0.659 0.593 12% 0.893 0.797 0.712 0.636 0.567 The IRR of the project will be O A. less than 10%, more than 11% OB. more than 11% O C. less than 11% OD. between 10% and 11% Walsh Automobile Company fabricates automobiles. Each vehicle includes one airflow sensor, which is currently made in-house. Details of the airflow sensor fabrication are as follows: Volume Variable cost per unit Fixed costs 700 units per month $8 per unit $13,000 per month A Japanese factory has offered to supply Walsh with ready-made units for a cost of $15 per sensor. Assume that Walsh's fixed costs could be reduced by $3,000 if it outsources and that Walsh will not be able to use the excess capacity in any profitable manner. If Walsh decides to outsource, monthly operating income will_ O A. decrease by $1,900 O B. increase by $5,600 O C. increase by $13,000 O D. decrease by $13,000

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