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What does the npv rule say you should? do

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Problem: 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 $4.99 million per year. Your upfront setup costs to be ready to produce the part would be $8.15 million. Your discount rate for this contract is 7.6%.

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?

Reference no: EM132483081

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