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Your factory has been offeced a contract to produce a part for a new printer. The contract would last for theee years, and your canh
Your factory has been offeced a contract to produce a part for a new printer. The contract would last for theee years, and your canh fows from the contract would bo 35 , 4 milion per year. Your uptront setup costs to be ready to produce the part would be $7.98 miltion. Your discours rato for this contract is 7.8%. a. What is the IRR? b. The NPV is \$5.06 milion, which is positive so the NPV rule says to accept the project. Does the iRR rule agree with the NPV nule? a. What is the IRR? The IRR is 6. (Round to two decimal places)
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