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%.

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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?