Your factory has been offered a contract to produce a part for a new printer. The contract would last for 3years and your cash flows from the contract would be $4.84 million per year. Your upfront setup costs to be ready to produce the part would be $7.86million. Your discount rate for this contract is 7.5%.

a. What does the NPV rule say you should? do?

b. If you take the? contract, what will be the change in the value of your? firm?