First Firm has 946 shares outstanding and free cash flows of $46 per year. The firm's...
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First Firm has 946 shares outstanding and free cash flows of $46 per year. The firm's cost of capital is 0.11. First Firm has $27 of cash. Firm leadership wants to decide whether it should repurchase shares of make an investment with its cash. The investment would increase yearly cash flows to $53 per year. What is the NPV of the investment? First Firm has 946 shares outstanding and free cash flows of $46 per year. The firm's cost of capital is 0.11. First Firm has $27 of cash. Firm leadership wants to decide whether it should repurchase shares of make an investment with its cash. The investment would increase yearly cash flows to $53 per year. What is the NPV of the investment?
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