Prolessor Wendy Smith has been atfered the following opportinity: A law firm would like to retain her for an uppliont payment of $50,000. In retum, for the next year the fum wouls have access to eight hours of her time every month. As an altemative payment amangement, the fim would pay Protessor Smicti's hourly rite for the eight hours each mortin. Smith's nate is 5535 per hour and her opportunity cost of capital is 15% per year. What does the IRR nile advise regarding the payment arrangriment? (Hint: Find the morthly tate that wil yield an elfective annual rate of 15%.) What about the NPV rule