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

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