What is the net present value of the project, Finance Basics

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What is the net present value of the project

Problem

Assume General Motors have a weighted average cost of capital of 9%. GM is considering investing in a new plant that will save the company $20 million over each of the first two years, and then $10 million each year thereafter. If the investment is $100 million, what is the net present value (NPV) of the project?

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Finance Basics: What is the net present value of the project

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