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you are considering opening a new plant. The plant will cost $98.3 million upfront and will take one year to build after that it is

you are considering opening a new plant. The plant will cost $98.3 million upfront and will take one year to build after that it is expected I produce profits of $31.7 million at the end of every year of production the cash flows are expected to last forever
A) NVP? if your cost of capital is 8.8%
B) should you make the investment?
C) IRR?
D Max deviation
PLEASE DO ALL PARTS image text in transcribed
You are considering sering new plant. The plant will cont991.3 milion up front and will take one year to build. Aus that the expeded to produce profits of 317 milion the end of every year of production. The cash for expected to last for Calculate the NPV all this is an opportunity your cont of capital in B. Should you make the non? Calculate the IRR and use it to determine the maximum non alowable in the contar capital estimate to the decision unchanged The Vot the proped will be million found to con decimal place)

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