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

question 95

Multiple Choice

Coca-Cola Amatil (CCL) has a weighted average cost of capital of 10%. CCL 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) $7.3 million
• B) $6.6 million
• C) $7.9 million
• D) $8.7 million

---

Definitions:

Faith Stages

A conceptual framework outlining the evolution of an individual's faith or belief system across different phases of life.

Complicated Grief

A prolonged and intense form of grief that significantly impairs one's ability to function in daily life.

Depression

A common and serious mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Exaggerated Response

An overly dramatic or intensified reaction to a situation or stimulus, often beyond what is considered normal.