The Barby Division at Mattel Toys is considering the acquisition of a laser tattoo applicator that will be able to add custom-designed tattoos to the Barby doll. The machine costs $300M

The addition of tattoos to the iconic toy is expected to increase demand and raise free cash flow by $90 million over the next five years (at the end of each year). The machine has no anticipated resale value in five years. What is the project's IRR?
A) 14.24%
B) 15.24%
C) 15.74%
D) 16.24%
E) 16.74%


B

Business

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