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Your factory has been offered a contract to produce a part for a new printer. The contract would last three years and your cash flows

Your factory has been offered a contract to produce a part for a new printer. The contract would last three years and your cash flows from the contract would be $5.03 million. Your upfront setup cost to produce the part would be $8.05 million. Your discount rate if 7.7%

What is the IRR?

If the NPV is 4.98 million which is positive so you would accept the project. Does the IRR rule agree with the NPV rule?

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