General Motors has a weighted average cost of capital of 9%. GM is considering investing in a new plant that will save
Posted: Sun Jul 03, 2022 12:54 pm
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?
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?