Question: please help i rate well and super fast! and please round answer to 2 decimal place thanks . P 8-15 (similar to) Your factory has

 please help i rate well and super fast! and please round please help i rate well and super fast! and please round answer to 2 decimal place thanks .

P 8-15 (similar to) 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 $5.04 million 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 83% a. What is the IRR? b. The NPV is $499 milion, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!