Problem 8-18 Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an up- front payment of $50,000. In return, for the next year the firm would have access to eight hours of her time every month. Smith's rate is $550 per hour and her opportunity cost of capital is 15% per year. What does the IRR rule advise regarding this opportunity? What about the NPV rule? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. $ 50,000 550 Up-front payment Hourly rate Hours per month Opportunity cost Months in a year 8 15% 12 Monthly rate of pay IRR (monthly) IRR (annual) Take opportunity (Yes/No) Monthly opportunity cost NPV Take opportunity (Yes/No)