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%.

What do the NPV rule and IRR say about whether you should make the investment?

A. Both

B. Both NPV rule and IRR rule both say you should reject the investment

C. NPV rule says take the investment, IRR rule says to reject

D. NPV rule says to reject, IRR rule says to take the investment