Problem:
Coca- Cola Amatil (CCA) has a weighted average cost of capital of 9%. CCA 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.
Requirement:
Question: If the investment is $100 million, what is the net present value (NPV) of the project?
Note: Please provide through step by step calculations.