General Motors has a weighted average cost of capital of

1010%.

GM is considering investing in a new plant that will save the company

$ 25$25

million over each of the first two years, and then

$ 20$20

million each year thereafter. If the investment is $150 million, what is the net present value (NPV) of the project?

A.

$ 46.9$46.9

million

B.

$ 41.1$41.1

million

C.

$ 52.8$52.8

million

D.

$ 58.7$58.7

million