Question: You are considering opening a new plan. The plant will cost $ 9 0 M upfront and will take one year to build. After that,

You are considering opening a new plan. The plant will cost $90M upfront and will take one year to build. After that, it is expected to produce profits of $10M at the end of every year of production. The cash flows are expected to last forever. A. calculate the NPV of this investment opportunity if your costs of capital is 10%. B. Calculate the IRR. (Use the rule: ax^2+bx+c=0) C. Should you make this investment?

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