Imperial Motors is considering producing its popular Rooster model in China. This will involve an initial investment of CNY 5.5 billion. The plant will start production after one year. It is expected to last for five years and have a salvage value at the end of this period of CNY 515 million in real terms. The plant will produce 100,000 cars a year. The firm anticipates that in the first year, it will be able to sell each car for CNY 80,000, and thereafter the price is expected to increase by 4% a year. Raw materials for each car are forecasted to cost CNY 33,000 in the first year, and these costs are predicted to increase by 3% annually. Total labor costs for the plant are expected to be CNY 2.6 billion in the first year and thereafter will increase by 7% a year. The land on which the plant is built can be rented for five years at a fixed cost of CNY 315 million a year payable at the beginning of each year. Imperials discount rate for this type of project is 10% (nominal). The expected rate of inflation is 5%. The plant can be depreciated straight-line over the five-year period, and profits will be taxed at 25%. Assume all cash flows occur at the end of each year except where otherwise stated.

What is the NPV of the project plant?