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

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 $8.09 million. Your discount rate for this contract is 7.8% . a. What is the​ IRR? b. The NPV is $5.05 ​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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jeff jeffy answered 2 years ago
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