ANWSER A AND B PLEASE!!!

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 $5.05 million per year. Your upfront setup costs to be ready to produce the part would be $7.97 million. Your discount rate for this contract is 8.3%.

1. What is the IRR?
2. The NPV is $4.97 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

%.

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 $5.05 million per year. Your upfront setup costs to be ready to produce the part would be $7.97 million. Your discount rate for this contract is 8.3%. a. What is the IRR? b. The NPV is $4.97 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.)