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:

Referent Power

The influence one possesses due to others' respect, admiration, or desire to identify positively with them.

Interpersonal Relationships

Connections or associations between two or more people that may be based on feelings, work, or social interactions.

Admiration

A feeling of respect and approval for someone or something.

Servant Leadership

A leadership philosophy where the primary goal of the leader is to serve others, prioritizing the needs of the team and organization over their own.