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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 flows from the contract would be $5.03 million per year. Your upfront setup costs to be ready to produce the part would be $7.99 million. Your discount rate for this contract is 8.3%. a. What is the NPV? (Enter your answer in millions. Round to two decimal places.) Answer: b. What does the NPV rule say you should do? a. The NPV rule says that you should not accept the contract because the NPV>0. b. The NPV rule says that you should accept the contract because the NPV >0. c. The NPV rule says that you should accept the contract because the NPV
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