Professor Susan Jones has been offered the following deal: a law firm would like to retain her for an up-front payment of $49 000. In return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment arrangement, the firm would pay Professor Smith's hour y rate for the eight hours each month. Jones' rate is S545 per hour and her opportunity cost of capital is 15% per year. What does the IRR rule advise regarding the best payment arrangement? Hint Find the monthly rate that will yield an effective annual rate o 5% What about the MPV ru ? The IRR is %. (Round to two decimal places.) The IRR rule advises: (Select the best choice below.) O A O B O c. Since the IRR s less than the cost of capital 15%, Jones should accept the monthly payments over the year and re ect the opportunity o the up-front payment. Since the l R is less than the cost of capital 15%, Jones should reject the monthly payments over the year and accept the opportunity of h up ont payment. with an IRR of 15% and with Jones' cost of capital at 12.99%, according to the IRR rule, she should reject this opportunity. D. None of the above. The NPV is S . (Round to the nearest dollar) The NPV rule advises: (Select the best choice below.) OA. Even though the NPV is negative, the IRR is high enough to accept the up-front retainer. O B. Even though the NPV is positive, the IRR is below the cost of capital, so the correct decision is to reject the up-front payment O C. Since the NPV is positive, the correct decision is to accept the up-front retainer. O D. None of the above