a and b

Your factory has been offered a contract to prpduce a part for a new printer. the contract would last for 3 years and your cash flows from the contract would be $4.96 million per hear. Your upfront setup costs to he ready to produce the part would be $7.96 million. Your discount rate for this contract is 8.4%

a. what does the NPV rule say you shoukd do?

The NPV or the project is $____ million (round to teo decimal places)

b. If you take the contract, what will be the change in the value of your firm?

Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be 54.96 milion per year. Your upfront setup costs to be y lo produce the put would be 57.96 milion Youl de contrate for this contracts 0.4% What does the NPV e say you should do if you take the contract, what it to the change vive of your fem? Wat does the NPV ile say you should do The NPV of the project 3 milion (Round to bwodnom place Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be 54.96 million per year. Your upfront scot to be ready to produce the part would be $7 million Your discount rate for this contract is 14% a What does the NPV ruleshy you should do? b. you take the contract what will be the change in the value of your fem? 3. What does the NPV u say you should do? The NPV of the project emiton (Round to two decimal poms.)