SONY is considering to set up a plant in the city of Shenzhen to produce its Smart LED TV in China. You are given the following facts about the investment. Initial investment Price per unit I0= CNY 700,000,000; rises by 5% each year probability and remains unchanged P1=CNY11,000 per TV or P1=CNY5,000 per TV with equal Cost per unit Production C1= CNY5,000 and remains unchanged thereafter Discount rate 80,000 units of TV per year forever i=20% Suppose this investment is one of five plants with identical characteristics that could be built in China. The outcome from your initial investment will provide information about the price of TV that SONY can charge from Chinese customers. a) Please calculate the net present value (at t=0) of investing today in all the five plants as if it were a now-or-never alternative. (3 Marks) b) Please calculate the net present value (at t=0 ) of investing in one plant today and then waiting one year before making a decision on the other four plants. (8 Marks) c) Calculate the opportunity cost of investing in all five plants today. ( 2 Marks)