1. You are considering opening a new plant. The plant will cost $60 million up front. It is expected to generate a cash flow of $6 million next year. The cash flows will grow at a rate of 1% per year. There are 4 million shares outstanding. a. Calculate the NPV of the investment if your cost of capital is 6%. Should you make this investment? Why? b. Current stock price is $20. What is the impact of this project on the stock price? c. Draw the NPV vs r graph of this project in Excel. Calculate the IRR and locate it on the graph. d. Based on the graph in c, discuss whether you would accept the project if the company's cost of capital was between 25% and 30%. 1. You are considering opening a new plant. The plant will cost $60 million up front. It is expected to generate a cash flow of $6 million next year. The cash flows will grow at a rate of 1% per year. There are 4 million shares outstanding. a. Calculate the NPV of the investment if your cost of capital is 6%. Should you make this investment? Why? b. Current stock price is $20. What is the impact of this project on the stock price? c. Draw the NPV vs r graph of this project in Excel. Calculate the IRR and locate it on the graph. d. Based on the graph in c, discuss whether you would accept the project if the company's cost of capital was between 25% and 30%