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You are considering ogening a new plant. The plart will oost $101.7 milion uptront. Afer that, it is expected to produce profits of S26.5 million

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You are considering ogening a new plant. The plart will oost \$101.7 milion uptront. Afer that, it is expected to produce profits of S26.5 million at the end of every yeat. The cash flows are expediad to last forever, Caloulate the NPV of this imestmert ccporturily if your cost of capital is 8.8%. Should you make the investmeri? Calaulate the IRR. Use the IRR to determine the maximum amount of estimason error aliowable for the cost of cagital estimate io letive the decision undhanged

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