Professor Wendy Smith has been offered the followingâ deal: A law firm would like to retain her for an upfront payment of $60,000. Inâ return, for the nextâ year, the firm would have access to eight hours of her time every month.â Smith's rate is $630 perâ hour, and her opportunity cost of capital is 17% â(equivalent annualâ rate, EAR). What is the IRRâ (annual)? What is theâ NPV?

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Professor Wendy Smith has been offered the followingâ deal: A law firm would like to retain her for an upfront payment of $56,000.

Inâ return, for the nextâ year, the firm would have access to eight hours of her time every month. â Smith's rate is $594 perâ hour, and her opportunity cost of capital is 15%

â(equivalent annualâ rate, EAR). What is the IRRâ (annual)?

What is the IRRâ (annual)?

The IRRâ (annual) is %. (Round to two decimalâ places.)

b). What does the IRR rule advise regarding thisâ opportunity?

c) What is theâ NPV? What does the NPV rule say about thisâ opportunity? (Round to two decimalâ places.)

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