Professor Wendy Smith has been offered the following opportunity: A law firm would like to retain her for an upfront 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 hourly rate for the eight hours each month. Smith's rate is $545 per hour and her opportunity cost of capital is 15% 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 15%) What about the NPV rule?

Professor Wendy Sentered the following opportunity A law firm would storier for an uplront part of 549.000 un for the next year the firm would have conto eighthouse month. As we allemave payment rangement the food a Por Sibolyaghthouses on this tab 3545 per hour and her opportunity cost of capital is 15% What does the Fregarding the payment aangete Find the month that will yield on the annual te af 5) What about the NPV del The decimal place