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GM has just designed a new Saturn. It forecasts sales of 200,000 cars per year at an average price of $18,000. Costs are expected to

GM has just designed a new Saturn. It forecasts sales of 200,000 cars per year at an average price of $18,000. Costs are expected to be $17,000 / car. The model will sell for 4 years and GM expects an inventory of 40,000 cars. What is the NPV of the project (choose the most accurate answer)?

$680,000

$800,000

$880,000

$1,280,000

None of the above

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