Question: No excel ( q3q5) You are considering opening a new plant. The plant will cost $90 million upfront and will take one year to build.

No excel

( q3q5) You are considering opening a new plant. The plant will cost $90 million upfront and will take one year to build. After that, it is expected to produce profits of $10 million at the end of every year of production. The cash flows are expected to last forever. (Hint: CF0=$90M,CF1=0,CF2=$10M,CF3=$10M....) 3. (o.4 pts.) Caleulate the NPV of this investment opportunity if your cost of capital is 10%. 4. (0.4 pts.) Calculate the IRR. (Use this rule: ax2+bx+c=0x=2abb24ac ) 5. (0.4 pts.) Should you make the investment

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