Professor Wendy Smith has been offered the following opportunity: 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. As

an alternative payment arrangement, the firm would pay Professor Smith's hourly rate for the eight hours each month.

Smith's rate is $$560$ 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?

The annual IRR is

$\%.($Round to two decimal places.$)$