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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
Your factory has been offered a contract to produce a part for a new printer. The contract would last for years and your cash flows from the contract would be $ million year. Your upfront setup costs to be ready to produce the part would be $ million. Your discount rate for this contract is 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? a What does the NPV rule say you should do The NPV of the project is $ million. Round to two decimal places.
Your factory has been offered a contract to produce a part for a new printer. The contract would last for years and your cash flows from the contract would be $ million year. Your upfront setup costs to be ready to produce the part would be $ million. Your discount rate for this contract is
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?
a What does the NPV rule say you should do
The NPV of the project is $ million. Round to two decimal places.
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