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You are considering opening a new plant. The plant will cost $102.9 million upfront. After that, it is expected to produce profits of $28.7 million

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You are considering opening a new plant. The plant will cost $102.9 million upfront. After that, it is expected to produce profits of $28.7 million at the end of every year. The cash flows are expected to last forever Calculate the NPV of this investment opportunity if your cost of capital is 6,7% Should you make the Investment? Calculate the IRR Use the IRR to determine the maximum amount of ostiration error allowable for the cost of capital estimate to leave the decision unchanged Calculate the NPV of this investment opportunity if your cost of capitalis 67% The NPV of this restring opportunity is $2 million (Round to one decimal place) Should you make the investment? (Select the best choice below) You are considering opening a new plant. The plant will cost $102.9 million upfront. After that, it is expected to produce profits o every year. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is investment? Calculate the IRR. Use the IRR to determine the maximum amount of estimation error allowable for the cost of cap decision unchanged O A. No, because the NPV is less than zero. OB. No, because the NPV is not greater than the initial costs. OC. Yes, because the project will generate cash flows forever OD. Yes, because the NPV is positive Calculate the IRR The IRR of the project is % (Round to two decimal places) Uso the IRR to determine the maximum amount of estimation ortor allowable for the cost of capital estimate to leave the decision unchanged The maximum amount of estimation error allowable is %. (Round to two decimal places)

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