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
Correct Answer:
Verified
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