Question: Can i get the answer to this question please? Question2: You are considering opening a new plant. The plant will cost S100 million upfront and

Can i get the answer to this question please?

Can i get the answer to this question please? Question2: You are

Question2: You are considering opening a new plant. The plant will cost S100 million upfront and will take one year to build (i.e., it starts to produce cash flows at time t-2). After that, is expected to produce profits of S30 million at the end of every year of production. The cash flows are expected to last forever a. Calculate the NPV of this investment opportunity if your cost of capital is 8%. Should you make the investment? b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. c. Does the IRR rule agree with the NPV rule

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