Question 3 [20 marks) 1 You are tasked to perform an analysis of the manufacturing plant and to present your recommendation on whether the company should open the new plant or not. If the new plant is opened it will cost R500 million today and the expected cash flows are shown in the table below. The company's required rate of return is 12% Year Cash Flow 0 -500 000 000 60 000 000 2 90 000 000 170 000 000 230 000 000 205 000 000 140 000 000 110 000 000 70 000 000 -80 000 000 3 4 7 8 9 a. Estimate the normal pay back period of the proposed plan b. Estimate the discounted pay back period of the proposed plan c. Estimate the net present value of the proposed plan. d. Based on your analysis, should the company open the new plant? (3) (5) (10) (2)