Question: You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected to be $ 50 million,

You are helping a manufacturing firm decide whether it should invest in a new plant. The initial investment is expected to be $ 50 million, and the plant is expected to generate after-tax cash flows of $ 5 million a year for the next 20 years. There will be an additional investment of $ 20 million needed to upgrade the plant in 10 years. If the discount rate is 10%, Estimate the Net Present Value of the project (7 marks) Should this project be accepted or rejected? Explain your answer? (3 marks) Estimate the Internal Rate of Return for this project. (8 marks)

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