o = Homework: Lab #5 Question 12, Problem 17-16 Part 1 of 3 > HW Score: 32.14%, 9 of 28 points O Points: 0 of 3 Save AMS Company has unexpectedly generated a one-time extra $5 million in cash flow this year. After announcing the extra cash flow, AMS stock price was $50 per share (it has 1 million shares outstanding). The managers are considering spending the $5 million on a project that would generate a single cash flow of $5.5 million in one year, which they would then use to repurchase shares. Assume the cost of capital for the project is 15%. a. If they decide on the investment, what will happen to the price per share? b. If they instead use the $5 million to repurchase stock immediately, what will be the price per share? c. Which decision is better and why? . a. If they decide on the investment, the price per share will be $ (Round to the nearest cent.) Help me solve this View an example Ask my instructor Clear all Check