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Your factory has been ofered a contract to produce a part for a new printer. The contract would tast for 3 years and your cash

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Your factory has been ofered a contract to produce a part for a new printer. The contract would tast for 3 years and your cash flows trom the contract would be 55.23 milion per year, Your uptront setup costs to be ready to produce the part would be $7.96 million. Your ditcount rate for this contract is 7.99% a. What does the NPV nele say you should dot b. If you take the contract, what we te the change in the value of your frm? a. What does the NPV rile say you ahould do? The NPV of the project is 5 million. (Riound to two decimal places.)

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