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 $4.91million per year. Your...



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 $4.91million per year. Your upfront setup costs to be ready to produce the part would be $7.93 million. Your discount rate for this contract is 7.6%.


What is the​ IRR?____________________% (Round to 2 decimal places)


The NPV is $4.82 million, which is positive so the NPV rule says to accept the project.


Does the IRR rule agree with the NPV​ rule? _______________________















Jun 05, 2022
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