Considering opening new plant

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Reference no: EM134040291

Question

You are considering opening a new plant. The plant will cost$100 million upfront and will take one year to build. After that, it is expected to produce profits of $30 million at the end of every year of production. The cash flows are expected to last forever. current stock price is 10 dollars what will the stock price be if you accept? current stock price is 10 dollars. what will the stock be in you accept this project?

Reference no: EM134040291

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