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 $$540$ 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?