Professor Wendy Smith has been offered the following$$ opportunity: A law firm would like to retain her for an upfront payment of $$$$50$ comma $000.$ In$$ return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment$$ arrangement, the firm would pay Professor Smith$\text{'}$s hourly rate for the eight hours each month. Smith$\text{'}$s rate is $$$$555$ per hour and her opportunity cost of capital is $16\%$ per year. What does the IRR rule advise regarding the payment$$ arrangement? $($Hint$$: Find the monthly rate that will yield an effective annual rate of $16\%.)$ What about the NPV$$ rule?

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Part $1$

The annual IRR is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$