Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $$$$4\mathrm{.}91$ million. The product is expected to generate profits of $$$$1\mathrm{.}08$ million per year for $10$ years. The company will have to provide product support expected to cost $$$$96,000$ per year in perpetuity. Assume all profits and expenses occur at the end of the year.

a$.$ What is the NPV of this investment if the cost of capital is $6\mathrm{.}5\%?$ Should the firm undertake the$$ project? Repeat the analysis for discount rates of $1\mathrm{.}5\%$ and $14\mathrm{.}7\%,$ respectively.

b$.$ What is the IRR of this investment$$ opportunity?$$

c$.$ What does the IRR rule indicate about this$$ investment?