Question: hello, can you please help me solve this one? Your factory has been offerod a contract to produce a part for a new printoc. The
Your factory has been offerod a contract to produce a part for a new printoc. The contract would last for 3 yoars and your cash fiows from the costract would be $4 is milion por ynar Your uptront setup costs to be ready to produce the part would be $3.17 millice. Your discount rate foc this contract is 7.5%. 2. What does the NPV fule say you should do? b. If you take the contract, what will be the change in the value of your firm? a. What does the NPV rule say you shoult do? The NPV of the project is 1 miltion. (Round to two decinal places.)
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