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8. Your factory has been offered a contract to produce a part for a new printer. The contract would be for three years and your

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8. Your factory has been offered a contract to produce a part for a new printer. The contract would be for three years and your cash flows from the contract would be $5 million per year. Your up-front setup costs to be ready to produce the part would be $8 million. Your cost of capital for this contract is 8%. a. What does the NPVrule say you should do? b. If you take the contract, what will be the change in the value ofyour firm

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