Does the irr rule agree with the npv? rule

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You are considering opening a new plant. The plant will cost $98.1 million upfront and will take one year to build. After? that, it is expected to produce profits of $30.9 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 8.7%. Should you make the? investment? Calculate the IRR. Does the IRR rule agree with the NPV? rule?

Reference no: EM131551490

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