a & b

Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.09 million per year. Your upfront setup costs to be ready to produce the part would be $7.98 million. Your discount rate for this contract is 7.9%. a. What is the IRR? b. The NPV is $5.16 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is \%. (Round to two decimal places.)