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Author Question: General Motors has a weighted average cost of capital of 9%. GM is considering investing in a new ... (Read 113 times)

clippers!

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General Motors has a weighted average cost of capital of 9%.  GM is considering investing in a new plant that will save the company $25 million over each of the first two years, and then $10 million each year thereafter.  If the investment is $100 million, what is the net present value (NPV) of the project?
◦ $37.5 million
◦ $36.5 million
◦ $39.7 million
$34.2 million


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Marked as best answer by clippers! on Jul 9, 2019

Kingjoffery

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