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General Motors has a weighted average cost of capital of 8%. GM is considering investing in a new plant that will save the company $20

General Motors has a weighted average cost of capital of

8%.

GM 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?

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