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What is the irr

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Your factory has been offered a contract to produce a part for a new primer. The contract would last for three years, and your cash ?ows from the contract would be $5.09 million per year: Your upfront setup costs to be ready to produce the part would be $7.91 million. Your discount rate for this contract is 7.6%.

a. What is the IRR?

b. The NPV is $5.30 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? a. What is the IRR? The IRR is %, (Round to two decimal places.)

Reference no: EM133060858

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