Business, 13.04.2021 04:10 Binger4115

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 $4.99 million per year. Your upfront setup costs to be ready to produce the part would be $8.16 million. Your discount rate for this contract is 8.4%. A. What is the? IRR?
B. The NPV is $ 4.99 ?million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV?

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