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Imperial Motors is considering producing its popular Rooster model in China. This will involve an initial investment of CNY 5.8 billion. The plant witl stait

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Imperial Motors is considering producing its popular Rooster model in China. This will involve an initial investment of CNY 5.8 billion. The plant witl stait production after one year. It is expected to tast for five years and have a salvage value at the end of this period of CNY 518 million in real terms. The plant will produce 160,000 cars a year. The firm anticipates that in the first year, it will be able to sell each car for CNY 83,000 , and thereafter the price is expected to increase by 4% a year. Raw materials for each car are forecasted to cost CNY 36,000 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 2.9 bittion in the first year and thereafter witt increase by 7% a year. The fand on which the plant is bult can be rented for five years at a fixed cost of CNY 318 million a year payable at the beginning of each year. Imperial's 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? Note: Do not round your intermectiate calculations. Enter your answer in millions rounded to the nearest whole number

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