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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
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 $million per year. Your upfront setup costs to be ready to produce the part would be $million Your discount rate for this contract is aWhat is the IRR?bThe NPV is $million which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?aWhat is the IRR?The IRR isRound to two decimal places.
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