Finance Assignment | Professional Writing
June 3rd, 2020
Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an upfront payment of $60,000. In return, for the next year, the firm would have access to eight hours of her time every month.
Smith’s rate is $642 per hour, and her opportunity cost of capital is 17% (equivalent annual rate, EAR). What is the IRR (annual)? What does the IRR rule advise regarding this opportunity? What is the NPV? What does the NPV rule say about this opportunity?
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