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Assume General Motors has a weighted average cost of capital of 10%. GM is considering investing in a new plant that will save the company
Assume General Motors has a weighted average cost of capital of 10%. GM is considering investing in a new plant that will save the company $30 million over each of the first two years, and then $25 million each year thereafter. If the investment is $150 million, what is the net present value (NPV) of the project?
A) 65.2
B) -76.1
C) -86.9
D) 108.7
I cannot figure out how to solve with excel. Would be very helpful if solved with excel. Thanks
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