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A firm generates $ 9 million of free cash flows a year ( including a 2 million increase in net working capital ( NWC )

A firm generates $9 million of free cash flows a year (including a 2 million increase in net working capital (NWC)). It has an opportunity cost of capital of 4% and a growth rate of 0%. Suppose that the firm wants to estimate the net present value of the firm if it manages its NWC more efficiently than before and projects that it will only need to increase its NWC by $1 million (as opposed to the previous $2 million). How much higher would the value of the firm be if they need to increase their NWC by $1 million as opposed to $2 million?
(a) $225 million
(b) $250 million
(c) $25 million
(d)-$25 million
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