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General Motors has a weighted average cost of capital of 7%. GM is considering investing in a new plant that will save the company $25
General Motors has a weighted average cost of capital of 7%. GM is considering investing in a new plant that will save the company $25 million over each of the first two years, and then $20 million each year thereafter, continuing indefinitely. If the investment is $150 million, what is the net present value (NPV) of the project? O A. $144.8 million O B. $115.8 million O c. $130.3 million D. $101.3 million
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