Innovation Company is thinking about marketing a new software product. Upfront costs to market and develop the product are $$$$4\mathrm{.}95$ million. The product is expected to generate profits of $$$$1\mathrm{.}12$ million per year for $10$ years. The company will have to provide product support expected to cost $$$$94,000$ 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 $6\mathrm{.}2\%?$ Should the firm undertake the$$ project? Repeat the analysis for discount rates of $1\mathrm{.}3\%$ and $15\mathrm{.}8\%,$ respectively.

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

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