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Your factory has been oftered a contract to produce a part for a new printer. The contract would last for 3 years and your cosh
Your factory has been oftered a contract to produce a part for a new printer. The contract would last for 3 years and your cosh flows from the contract would be $4.93 milicon per yoar: satup costs to be ready to produce the part would be $8.24 milion. Your discount rate for this contract is 8.5%. 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 jout frrm? a. What does tho NPV rule say you should do? The NPV of the propect it 5 milion. (Round to two decimal ploces.) What should you do? (Select the best choice below) A. The NPV nde says that you should not accept the contract because the NPV >0. a. The NPV rule says that you should accept the contract becaula the NPV >0. C. The NPV rule says thut you should not sccept the contract because the NPV
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