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 $4 86 million per year Your upfront setup costs to be ready to produce the part would be $8 23 million Your discount rate for this contract...

a The NPV rule states that a project with a positive net ...

Your factory has been offered a contract to produce a part for a new printer. The contract

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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 $4 86 million per year. Your upfront setup costs to be ready to produce the part would be $8.23 million. Your discount rate for this contract is 7.8% .
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?