Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3 years and your cash flows from the contract would be $4.96 million per year. Your upfront setup costs to be ready to produce the part would be $7.79 million. Your discount rate for this contract is 7.6%.

a. What does the NPV rule say you shoulddo?

b. If you take thecontract, what will be the change in the value of yourfirm?

The NPV of the project is $_____ million. (Round to two decimalplaces.)