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2. Professor Cliff Jones has been offered the following opportunity: An accounting firm would like to retain her for an upfront payment of $50,000. In
2. Professor Cliff Jones has been offered the following opportunity: An accounting firm would like to retain her for an upfront payment of $50,000. In return, for the next year the firm would have access to eight hours of her time every week. As an alternative payment arrangement, the firm would pay Professor Jones' hourly rate for the eight hours each week, at the end of the week. Smith's rate is $135 per hour and his|opportunity cost of capital is 15% per year (EAR). What does the IRR rule advice regarding the payment arrangement? What about the NPV rule
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