You are considering opening a new plant.

%) Problem 8.8 Question Help * You are considering opening a new plant. The plant will cost $96.6 million up front and will take one year to build. After that it is expected to produce profits of $31.7 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPVof th s investment opportunity f your cost of capital is 8.6%, Should you make the investment? alculate the l R and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The NPV of the project will be $ 242.81 million. (Round to one decimal place.) You should make the investment. Select from the drop-down menu.) The IRR is 26.04%. (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate is Round to two decimal places.)