You are considering opening a new plant. The plant will cost $95.5 million upfront and will take one year to build. After that, it is expected to produce profits of $29.1 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 6.5%. Should you make the investment? Calculate the IRR. Does the IRR rule agree with the NPV rule? Here is the cash flow timeline for this problem: The timeline starts at Year 0 and goes on forever. It shows a cash flow of -95.5 in Year 0 and cash flows of 29.1 each year starting from Year 2, which continue forever. All the cash flows are in millions of dollars. Calculate the NPV of this investment opportunity if your cost of capital is 6.5%. (Round to one decimal place.) Should you make the investment? (Select the best choice below.)

A. No, because the NPV is less than zero.

B. No, because the NPV is not greater than the initial costs.

C. Yes, because the project will generate cash flows forever.

D. Yes, because the NPV is positive. Calculate the IRR. (Round to two decimal places.) Does the IRR rule agree with the NPV rule?(Select the best choice below.)

A. Since the IRR is less than the 6.5% discount rate, the IRR rule gives a different answer than the NPV rule.

B. Since the IRR exceeds the 6.5% discount rate, the IRR rule gives a different answer than the NPV rule.

C. Since the IRR exceeds the 6.5% discount rate, the IRR rule gives the same answer as the NPV rule.

D. Since the IRR is less than the 6.5% discount rate, the IRR rule gives the same