You are considering opening a new plant the plant will cost


You are considering opening a new plant. The plant will cost $500 million upfront. After that, it is expected to produce free cash flows that will last forever. The cash flow is expected to start at  $30 million in the first year and grow at a constant rate of 3%. Calculate the NPV (in $ mm, round to nearest million) of this investment opportunity if your opportunity cost of capital is 8%.

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Financial Management: You are considering opening a new plant the plant will cost
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