Coca-Cola Amatil (CCL) Has a Weighted Average Cost of Capital

question 67

Multiple Choice

Coca-Cola Amatil (CCL) has a weighted average cost of capital of 11%. CCL 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) -$51 million
• B) -$41 million
• C) $86 million
• D) $45 million

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Definitions:

Hidden Stereotypes

Unacknowledged or unconscious biases that can influence perceptions and behavior towards certain groups of people.

Resilience

The capacity to recover quickly from difficulties or to bounce back from setbacks, displaying strength and adaptability.

Patience

The capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset.

Tolerance

The ability or willingness to tolerate the existence of opinions or behavior that one dislikes or disagrees with.