Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an upfront payment of $50,000. IN return, for the next year, the firm would have access to eight hours of her time every month. Smiths rate is $550 per hour, and her opportunity cost of capital is 15% (equivalent annual rate, EAR).

What is the IRR (annual)?

What is the NPV?

* not using excel

- How do you find the cash flow price of $4,400?