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 flow from the contract would be $5.08 million per year. Your upfront setup costs to be ready to produce the part would be $8.02 million. Your discount rate for this contractis 8.2%.

a) What is the IRR?

b) The NPV is 5.02 million, which is positive so NPV rule says to accept the project. Does IRR rule aggre with the NPV rule?