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help Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your
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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 . 98 melion per year. Your uptront setup costs to be ready to produce the part would be $8.12 melion. Your discount rate for this contract is 78% a. What does the NPV rule say you should do? b. If you take the contract, what wit be the change in the value of your firm? a. What does the NPV rule say you should do? The NPV of the project is 5 million. (Round to two decimal piaces) Step by Step Solution
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