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What is the net present value of the project

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Question - General Motors has a weighted average cost of capital of 11%. 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?

A) $45 million

B) -$51 million

C) $-41 million

D) $86 million

Reference no: EM132745669

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