IRR rule advise regarding the payment arrangement-NPV rule

Assignment Help Financial Management

Reference no: EM131579220

Professor Wendy Smith has been offered the following opportunity: A law firm would like to retain her for an upfront payment of $49,000. In return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment arrangement, the firm would pay Professor Smith's hourly rate for the eight hours each month. Smith's rate is $535 per hour and her opportunity cost of capital is 15% per year. What does the IRR rule advise regarding the payment arrangement? What about the NPV rule?

The IRR is 1%. Round to two decimal places

Reference no: EM131579220

Questions Cloud

Review case of ballard v commissioner : Locate Ballard v. Commissioner, 544 U.S. 40; 95 AFTR 2d 1302 (2005). What was the main issue before the Supreme Court?

Define the business rules : Business rules: The OrderID is a unique number given to each order.

Order these options in increasing value : Order these options in increasing value, and give an explanation.

Distinguish between sole proprietorships-partnerships : “Define and distinguish between sole proprietorships, partnerships and corporations.”

IRR rule advise regarding the payment arrangement-NPV rule : What does the IRR rule advise regarding the payment arrangement? What about the NPV rule?

Exploring core competencies : For this option, choose a job that you currently have or have had in the past. Identify the different competencies needed to complete your work successfully.

Summarize data collection and create an excel spreadsheet : The purpose of this assignment is to conduct internal and external research to determine previously attempted solutions and potential solutions.

George is general partner and dan is limited partner : George and Dan decided to form a limited partnership in which George is the general partner and Dan is the limited partner.

Cash that remains after payoff of mortgage : how much cash will you have from the sale once you pay off the mortgage?

User Account

All Pages