P1:

P2:

General Motors has a weighted average cost of capital of 7%. GM is considering investing in a new plant that will save the company $30 million over each of the first two years, and then

$25 million each year thereafter. If the investment is $150 million, what is the net present value (NPV) of the project?

P3:

Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $55 million each year, and expects these to grow at 5% each year. The upfront project costs are $420 million and Ford's weighted average cost of capital is 8%. If the issuance costs for external finances are $10 million, what is the net present value (NPV) of the project?

Outstanding debt of Home Depot trades with a yield to maturity of 9%. The tax rate of Home Depot is 35%. What is the effective cost of debt of Home Depot? OA. B. OC. OD. 6.73% 9% 5.85% 6.14%