A. What does the NPV rule say you should do? B. What should you do? (Select the best choice below.) 1.) The NPV rule says that you should not accept the contract because the NPV>0.

2.) The NPV rule says that you should not accept the contract because the NPV

3.) The NPV rule says that you should accept the contract because theNPV

4.) The NPV rule says that you should accept the contract because theNPV>0.

C. 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 three years, and your cash flows from the contract would be $5.15 million per year. Your upfront setup costs to be ready to produce the part would be $7.76 million. Your discount rate for this contract is 7.9%