You are considering opening a new plant. The plant will cost $102.9 million upfront and will take one year to build. After that, it is expected to produce profits of $29.8 million at the end of every year of production. The cash flows are expected to last forever.

a Calculate the NPV of this investment opportunity if your cost of capital is 6.4%. (Round to one decimal place.)

b Should you make the investment?

c Calculate the IRR. Does the IRR rule agree with the NPV rule?

Here is the cash flow timeline for this problem:

Here is the cash flow timeline for this problem: Years 0 2 3 Forever Cash Flow ($ million) - 102.9 29.8 29.8 29.8 29.8 Calculate the NPV of this investment opportunity if your cost of capital is 6.4%. The NPV of this investment opportunity is $ million. (Round to one decimal place.) Help me solve this View an example Get more help e to search O I E