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I could use help with the two questions below (thank you): ABC Manufacturing Company will invest in a stamping plant in Madison Ohio. The plant
I could use help with the two questions below (thank you):
ABC Manufacturing Company will invest in a stamping plant in Madison Ohio. The plant requires an initial outlay of $100,000,000. Net cash inflows from the project are expected to be $40,000,000 for the first year, $35,000,000 for year 2 and 3, and $15,000,000 for years 4 through 10, at which time the stamping plant will be sold for scrap for $10,000,000. If the stamping plant's cost of capital is 10%:
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What is the projects NPV?
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What is the project's IRR?
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