Question: Ch8 Q2 Show work please Your factory has been offered a contract to produce a part for a new printer. The contract would last for

Ch8 Q2

Show work please

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 54.78 million per year . Your upfront setup costs to be ready to produce the part would be $8.15 million Your discount rate for this contract is 78% 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 your firm

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