You are considering opening a new plan. The plan will cost 98.9 million upfront and will take one year to build. After that it is expected to produce profit of 30.4 million at the end of every year a production. The cash flow are expected to last forever. Calculate the NPV Of this investment opportunity if your cost of capital is 8.9%. Should you make the investment? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision and changed.

NPV- (round to one decimal)

IRR %. (Round to Two decimals)

The maximum deviation allowable in cost of capital estimate is % (round to two decimals)

wated to producers of 530 4. ? Calculate the IRR and use to the the end of every year of production The cash flow repeded to devono the cost of capital matave the You are considering opening a new plant. The plant i cos i nupfront and wi t h forever Calculate the NPV of this s t ory you should you make the inves decision unchanged The NPV of the project will be on (Round tocne decimal place You make the brothed down The IRR Round to two decimal places The main deviation allowable in the cost of capital estimates Round to two decimal com C he m porunc on and w h you ould be this spected to prolon hende the late the hands in the m produconhecepchodom in the cost of all the The NIV of the projectes Pound tone deal place) make the electromthedoop-down mene) The Round to be places) The main o n the cost of capital s o und to dedim You are considering opening a new plant. The plant will cost $909fon up front and la ne year to build her that s pected to produce pro 530d n at the end of every year el production The cash flows are expected to last forever Calculate the NV d i investment opportunity your cost of capitals 895 Should you make the investment Calotte the IRR and use to determine the man deviation allowable in the cost of capitales decision unchanged The NPV of the project will be s o Round to one decimal place) You make the investment. (Select from the drop-down menu) The RSI (Pound to two decimal places) The maximum deviation i n the cost of capital estimate found a decimal places)