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You are considering opening a new plant. Toe pland wit cout $96.9 mition uptront and wit take one year to buid Afer that, it is

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You are considering opening a new plant. Toe pland wit cout $96.9 mition uptront and wit take one year to buid Afer that, it is expected to produce prefits of $28.7 milian at the efd of eviery year of IRRR rule agree with the NPV tula? Hero is the cesh flow timeline far this probism: Years Cast flow is milic Calculate the NPV of this nuestment opportuncy if yoat coat of capital is 6.9%. The NPV of this investment opportunity is 5 milion. (Round to two deeimal places.) Shauld you make the invesiment? (Select the best choice below.) A. No, beciuse the NPV is lass than zere. B. Yes, because the NPV is posive. c. No, because the NPV is not greater thas the incial costs. D. Yes, because the project will generate cash fows forever. Calculite the IRR. The IRR of the propect is %. (Round ip two docmal places.) Does the RRR nie agre wit the NPV ruie? (Select the best choioe beiow) A. Since te IfR is loss than the 6.96 diccount rele. the IRR rule gives a dilerent answer than the NoV rude B. Since the IFR exceeds the 69 ss discount rate, the IRR nue ghes the same brawer as the NPV rule. c. Since the Ifir is less than the 69% discount rate, the IfR rule ghes the same asp wes ss the NPV rule

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