This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Net Present Value (NPV) = $38,712,000 From the result Since the NPV is greater than zero, it would be better to invest in So, GM must have to start the new project of Solar Car. Reference http://en.wikipedia.org/wiki/Net_present_value#Formula http://www.youtube.com/watch?v=aciZNu7kE_g&feature=related Net Present Value : It is defined as the total present value (PV) of a time series of cash flows. Required Rate of Return is 10% 6 $40,000 1970 $78,800,000 0.1 $7,880,000 $38,912,000 n the project....
View Full
Document
 Spring '10
 DRHAHN
 Net Present Value

Click to edit the document details