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Alphas CEO proposes to invest the entire amount of the coming years $10 billion free cash flow in a project that management believes will generate
Alphas CEO proposes to invest the entire amount of the coming years $10 billion free cash flow in a project that management believes will generate a perpetual annual cash flow of $2.1 billion. The CEO further asserts that the new project has similar risk to the companys assets in place. If the company were to announce immediately its plans for the investment one year from now. What do you think will happen to Alphas stock price today?
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