Use the Information for the Question(s)below

question 31

Multiple Choice

Use the information for the question(s) below.
Iota Industries is an all-equity firm with 50 million shares outstanding.Iota has $200 million in cash and expects future free cash flows of $75 million per year.Management plans to use the cash to expand the firm's operations,which in turn will increase future free cash flows by 12%.Iota's cost of capital is 10% and assume that capital markets are perfect.
-The NPV of Iota's expansion project is closest to:

• A)-$110 million.
• B)-$137.5 million.
• C)$0.
• D)$75 million.

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Definitions:

Employee Development

Initiatives or programs focused on enhancing the skills, knowledge, and abilities of employees, often through training and professional growth opportunities.

Relationship Management

The strategy and practices for managing, fostering, and improving the relationships an organization has with its clients, customers, or stakeholders.

Human Resource Manager

A professional responsible for overseeing the implementation of HR strategies, practices, and operations within an organization.

Trust

The confidence in the honesty, integrity, reliability, and fairness of a person or organization, foundational to relationships and cooperation.