$($q$3)$ 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: $C{F}_0=-$$$90M,C{F}_1=0,C{F}_2=$$$10M,C{F}_3=$$$10M.q,$

$3.(0\mathrm{.}8$ pts$.)$ Based on NPV rule, should you make the investment? $($that is$,$ NPV$>0?)$

A$)$ Yes

B$)$ No

C$)$ NPV $=0,$ so it depends.