Business, 13.07.2020 22:01 Skye251

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 $ 4.91 million per year. Your upfront setup costs to be ready to produce the part would be $ 7.96 million. Your discount rate for this contract is 7.5 %. Required:
a. What is the IRR?
b. The NPV is $ 4.68$4.68 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?

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Your factory has been offered a contract to produce a part for a new printer. The contract would las...

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