Find the IRR

You are considering opening a new plant. The plant will cost $96.1 million upfront. After that, it

is expected to produce profits of $28.7 million at the end of every year. The cash flows are expected

to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 7.2%.

Should you make the investment? Calculate the IRR and use it to determine the maximum

deviation allowable in the cost of capital estimate to leave the decision unchanged.