general motors

a) General Motors has a weighted average cost of capital of 10% and is considering investing in a new plant that will save the company $20 million over each of the first two years, and then $15 million each year thereafter. If the investment is $150 million, what is the net present value (NPV) of the project? [15 marks] b) Briefly discuss the Miller and Modigliani's proposition on dividend irrelevance. [10 marks]