Your factory has been offered a contract to produce a part for a new printer. The contract would last for three years, and your cash flows from the contract would be $ 5.06 million per year. Your upfront setup costs to be ready to produce the part would be $ 7.97 million. Your discount rate for this contract is 7.7 %.

a. What is the IRR? (Round to two decimal places.)

b. The NPV is $ 5.14 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?