General Motors has a weighted average cost of capital of 9​%. GM is considering investing in a new plant that will save

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answerhappygod
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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

Post by answerhappygod »

General Motors has a weighted average cost of capital of
9​%.
GM is considering investing in a new plant that will save thecompany
$25
million over each of the first two​ years, and then
$15
million each year​ thereafter, continuing indefinitely. Ifthe investment is​ $150 million, what is the net presentvalue​ (NPV) of the​ project?
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