Coca-Cola Amatil (CCL)has a Weighted Average Cost of Capital of 9

question 1

Multiple Choice

Coca-Cola Amatil (CCL) has a weighted average cost of capital of 9%. CCL is considering investing in a new plant that will save the company $25 million over each of the first two years, and then $10 million each year thereafter. If the investment is $100 million, what is the net present value (NPV) of the project?

• A)$39.7 million
• B)$37.5 million
• C)$36.5 million
• D)$34.2 million

---

Definitions:

Hygiene Factors

Factors related to job dissatisfaction, such as salary, working conditions, and company policies, according to Herzberg's motivation-hygiene theory.

Motivators

Factors or incentives that encourage a person to act or work harder.

Achievement Motivation

A desire to accomplish goals and excel in tasks, driving individuals to succeed.

Very High Goals

Goals set by individuals or organizations that are significantly challenging and ambitious, often aiming to achieve exceptional outcomes.