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(q3 q5) You are considering opening a new plant. The plant will cost $90 million upfront and will take one year to build. After that,

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(q3 q5) You are considering opening a new plant. The plant will cost $90 million upfront and will take one year to build. After that, it is expected to produce profits of $10 million at the end of every year of production. The cash flows are expected to last forever. (Hint: CF0=$90M,CF1=0,CF,=$10M,CF3=$10M ) 3. ( (0.4pts ) Calculate the NPV of this investment opportunity if your cost of capital is 10%

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