You are thinking of making an investment in a new plant. The plant will generate revenues of $$1\mathrm{.}34$ million per year for as long as

you maintain it$.$ You expect that the maintenance costs will start at $$69,680$ per year and will increase $5\%$ per year thereafter.

Assume that all revenue and maintenance costs occur at the end of the year. You intend to run the plant as long as it continues to

make a positive cash flow $($as long as the cash generated by the plant exceeds the maintenance costs$).$ The plant can be built and

become operational immediately and the interest rate is $6\%$ per year.

a$.$ What is the present value of the revenues?

b$.$ What is the present value of the maintenance costs?

c$.$ If the plant costs $$13\mathrm{.}4$ million to build, should you invest in the plant?

a$.$ What is the present value of the revenues?

The present value of the revenues is $$.($Round to the nearest dollar.$)$

b$.$ What is the present value of the maintenance costs?

The present value of the maintenance costs is $$,.($Round to the nearest dollar.$)$

c$.$ If the plant costs $$13\mathrm{.}4$ million to build, should you invest in the plant? $($Select the best choice below.$)$

A$.$ The NPV is $$18,635,022,$ which is positive, so you should invest in the new plant.

B$.$ The NPV is $$5,235,022,$ which is positive so you should invest in the new plant.

C$.$ The NPV is $$21,694,635,$ which is positive, so you should invest in the new plant.

D$.$ The NPV is $-$$$3,059,613,$ which is negative, so you should not invest in the new plant.