Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an upfront payment of

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answerhappygod
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Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an upfront payment of

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Professor Wendy Smith has been offered the following deal: A law
firm would like to retain her for an upfront payment of $52,000. In
return, for the next year the firm would have access to 8 hours of
her time every month. Smith's rate is $556 per hour and her
opportunity cost of capital is 14%(EAR). What does the IRR rule
advise regarding this opportunity? What about the NPV
rule?
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