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\mathrm{.}17$ million per year. Your upfront setup costs to be ready to produce the

part would be $$8\mathrm{.}04$ million. Your discount rate for this contract is $8\mathrm{.}1\%.$

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?