General Motors Has a Weighted Average Cost of Capital of 10%.GM

General Motors has a weighted average cost of capital of 10%.GM is considering investing in a new plant that will save the company $20 million over each of the first two years,and then $15 million each year thereafter.If the investment is $150 million,what is the net present value (NPV) of the project?

A) $6.6 million
B) $7.3 million
C) $7.9 million
D) $8.7 million