You are considering opening a new plant. The plant will cost $35 million upfront and will take two years to build. After that, it is expected to produce net cash flows of $5 million at the end of every year of production. The cash flows are expected to last forever.

Should you make the investment if your opportunity cost is 10%?

Answer rating: 100% (QA)

Net Present Value NPV Pv inflow Pvoutflows Present value o... View the full answer