Soft and Cuddly is considering a new toy that will produce the following cash flows. Should the company produce this toy based on IRR if the firm requires a rate of return of 17.5 percent?
Year. Cash Flow
0. -132,000
1. 97,000
2. 42,000
3. 28,000
Yes, because the project's rate of return is 16.45 percent
Yes, because the project's rate of return is 11.47 percent
No, because the project's rate of return is 16.45 percent
No, because the project's rate of return is 11.47 percent
No, because the internal rate of return is zero percent