# What is the IRR?

**What is the IRR?**

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 $ 4.94 million per year. Your upfront setup costs to be ready to produce the part would be $ 7.95 million. Your discount rate for this contract is 8.4%.

**a.** What is the IRR?

**b.** The NPV is $ 4.69 million, which is positive so the NPV rule says to accept the project. Does the IRR rule agree with the NPV rule?

**What is the IRR?**

*What is the IRR?*

What is the IRR?

**What is the IRR?**

*What is the IRR?*

What is the IRR?

**What is the IRR?**

*What is the IRR?*

What is the IRR?

**What is the IRR?**