Question: PLEASE simply answer A and B Your factory has been offered a contract to produce a part for a new printer. The contract would last

PLEASE simply answer A and B

PLEASE simply answer A and B Your factory has been offered a

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 $5.08 million per year. Your upfront setup costs to be ready to produce the part would be $8.04 million. Your discount rate for this contract is 8.2%. a. What is the IRR? b. The NPV is $5.00 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule

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