You are considering opening a new plant. The plant will cost $$100$ million upfront. After that, it is expected to produce profits of $$30$ 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 $8\%.$ Should you make the investment? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.