Assume General Motors Has a Weighted Average Cost of Capital

question 43

Multiple Choice

Assume General Motors has 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?

• A) $25.8 million
• B) $31.6 million
• C) $28.7 million
• D) $27.3 million

Grasp the use of logical functions (IF, AND, OR, NOT) to make decisions within cells based on given criteria.

Understand Excel's spell check functionality and how to manage dictionary words.

Learn how to effectively apply number formats, including percentage, currency, and date formats.

Know the use of Excel's styles and themes to enhance worksheet appearance.

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Definitions:

Administrative Agencies

Government bodies responsible for the oversight and implementation of specific regulations and laws in various sectors.

Lobbying

Lobbying involves advocacy with the intent to influence decisions made by officials in the government, usually conducted by special interest groups or lobbyists.

Legislation

Legislation is the process through which statutes or laws are proposed, developed, and enacted by a governmental body to regulate, authorize, sanction, grant, declare, or restrict various actions and activities.

Congress

The U.S. national legislature, made up of two chambers: the Senate and the House of Representatives.