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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 3 years and your cash fows from the contract would be $4.97 million per yest Your upfront setup conts to be ready 10 produce the part would be $.16 million. Your discount rate for this contract is 8.1% a. What is the ifR? b. The NPV is $4.63 milion, which is postre, so the NPV nule says to accept the project. Does the IRR fule agreo wch the NPV nule? a. What is the IRR? The IRR is K. (Rlound to two decimal places.) b. The NPV is $4.63 milion, which is positve so the NPV rule says to acceot the project. Does the IRR nle agree with the NPV nule? The IRR nule with the NPV rule. (Select from the drop-down manu)
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