Coca-Cola Amatil (CCL)has a Weighted Average Cost of Capital of 10

question 45

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

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Definitions:

Organizational Development

A domain focused on enhancing understanding and improving how people can more effectively achieve organizational change and better performance through research, theoretical development, and practical application.

Finance And Accounting

The management of money, including the processes of budgeting, saving, investing, borrowing, and forecasting.

Organizational Development

A planned, systematic approach to improving an organization's capacity to achieve its goals through changes in processes, culture, and structure.

Organizational Renewal

The process through which an organization rejuvenates its strategies, structures, and capabilities to adapt to changes in the environment.