Question: Hello! I'm having some trouble with this practice question. Any help is greatly appreciated. (Drop down is Should or Should not) You are considenng opening

Hello! I'm having some trouble with this practice question. Any help is greatly appreciated. (Drop down is "Should" or "Should not")

Hello! I'm having some trouble with this practice
You are considenng opening a new plant. The plant will cost $101.8 million up front and will take one yearto build. After that it is expected to produce prots of $29.? million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity it your cost of capital is 8.8%. Should you make the investment? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The NPV of the project will be $|:| million. (Round to one decimal place.) You make the investment. (Select from the dropdown menu.) The IRR is D%. (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate is D95. (Round to two decimal places.)

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