You are considering opening a new plant. The plant will cost $104.7 million upfront and will take two years to build. After that, it is expected to produce net cash flows of $29.9 million at the end of every year of production. The cash flows are expected to last forever. Should you make the investment if your opportunity cost is 8.7%?

a) what is NPV

b) Should/ should not make investment?

c) IRR? %

d) max deviation allowable?