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Posted on Jul 03, 2024

General Motors has a weighted average cost of capital of 9%. GM is considering investing in a new plant that will save the company $30

million over each of the first two years, and then $15 million each yearthereafter, continuing indefinitely. If the investment is $150 million, what is the net present value (NPV) of the project?

A. $43.1 million

B. $34.4 million

C. $38.7 million

D. $30.1 million

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