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Professor Wendy Smith has been offered the following?opportunity: A law firm would like to retain her for an upfrontpayment of $ 49 comma 000. In? return, for the next year the firmwould have access to eight hours of her time every month. As analternative payment? arrangement, the firm would pay Professor?Smith's hourly rate for the eight hours each month. ? Smith's rateis $ 535 per hour and her opportunity cost of capital is 15 % peryear. What does the IRR rule advise regarding the payment?arrangement? (Hint: Find the monthly rate that will yield aneffective annual rate of 15 %?.) What about the NPV? rule? The IRRis d?%. ?(Round to two decimal? places.)
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