# A proposed nuclear power plant will cost $2.7 billion to build and then will produce cash flows of$350 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $950 million. a. What is the NPV of the project if the discount rate is 3%? b. What is the NPV of the project if the discount rate is 16%? Question A proposed nuclear power plant will cost$2.7 billion to build and then will produce cash flows of $350 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of$950 million.

a. What is the NPV of the project if the discount rate is 3%?

b. What is the NPV of the project if the discount rate is 16%?