1. Assume you are presented with the opportunity to invest in the construction of a nuclear power plant. You will need to pay $50,000,000 for the construction but it is anticipated that you will enjoy a savings of $5Million for each of the next 20 years. In the 20^thyear the plant will be de-commissioned at a cost of $7Million. What is the NPV of this project assuming a discount rate of 8%?

1. $2,411,100
2. ($2,411,100)
3. $1,412,511
4. ($1,812,300)