Professor Wendy Smith has been offered the following opportunity. A law firm would like to retain her for an upfront payment of $48.000. In retum, 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 $535 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? The Round to two decimal places.) The IRR re advises (Select the best choice below) O A Since the IRR Iran the cost of capital, 15%, Smith should accept this opportunity OB With an IRR 15% and with Smith's cost of capital at 13.44%, according to the IRR , he should reject this opportunity OC. Since the IRR is less than the cost of capital, 15%. Smith should tum down this opportunity OD. None of the above The NPC). (Hound to the nearest dotat) The NPV ndo ad (Select the best choice below) OA Even though the NPV is negative er is below the cost of capital, to the correct decision to repeat the uptont payment Om NPV is negative, the correct decision is to accept the upfrontreiner OC. Even though the NPV is post the IRR is high enough to accept the upfrontein OD. None of the above