You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $10.1 million today and $5.3 million in one year The govemment will pay you $20.9 million in one year upon the building's completion Suppose the interest rate is 10.4% a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today? a. What is the NPV of this opportunity? The NPV of the proposel is $ miltion (Round to two decimal places.) Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $5.03 million per year. Your upfront setup costs to be ready to produce the part would be $7.93 million. Your discount rate for this contract is 79%. a. What is the IRR? b. The NPV is $506 million, which is positive so the NPV rule says to accept the project Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is \%. (Round to two decimal places) Professor Wendy Smith has been offered the following opportunity A law firm would hike 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 $550 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 annual IRR is \%. (Round to two decimal places)