Question: please answer these 2 questions using the information from the first image You are considering opening a new plant. The plant will cost $100.0 million

please answer these 2 questions using the information from the first image

image You are considering opening a new plant. The plant will cost

You are considering opening a new plant. The plant will cost $100.0 million up front and will take one year to builc After that it is expected to produce profits of $30.0 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 8.0%. 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 IRR is 22.22%. (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate is 14.82%. (Round to two decimal places.)

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