Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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30. 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 $4.93 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 7.8%. a. What is the IRR? b. The NPV is $4.84 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? **round to two decimal places**
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
$4.93 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 7.8%.
a. What is the IRR?
ummer Lo
b. The NPV is $4.84 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?
h Uber Eat
IEE
- 04/24/20
a. What is the IRR?
and Big Pha
The IRR is%. (Round to two decimal places.)
Digest for 5
b. The NPV is $4.84 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? (Select from the drop-down
menu.)
ent to Blizzar
The IRR rule
with the NPV rule.
#685220518
al Twitter log
W
Dakley® SI-E
50% Off All P
doesn't agree
agrees
every meal is jus
(-2.47%) S&P 500 4
pur community. Log
your account until Bl
Change Order Numb
bunt you
bff.
expand button
Transcribed Image Text: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 $4.93 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 7.8%. a. What is the IRR? ummer Lo b. The NPV is $4.84 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? h Uber Eat IEE - 04/24/20 a. What is the IRR? and Big Pha The IRR is%. (Round to two decimal places.) Digest for 5 b. The NPV is $4.84 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule? (Select from the drop-down menu.) ent to Blizzar The IRR rule with the NPV rule. #685220518 al Twitter log W Dakley® SI-E 50% Off All P doesn't agree agrees every meal is jus (-2.47%) S&P 500 4 pur community. Log your account until Bl Change Order Numb bunt you bff.
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