Cavalier Limited is entirely financed with equity. Management has extra cash on hand that it intends to use to expand the company's operations by adding a new product line. The new product line will increase existing free cash flows. Additional company details are below:
	Current shares outstanding			80.00	million
	Cash available			#VALUE!
	Existing annual free cash flows			#VALUE!
	Increase in free cash flows as a result of the new product line			#VALUE!
	Cost of capital			#VALUE!
Required:
a	Should the company go ahead with the investment of cash in the expansion of the new product line or should it pay out the cash available to shareholders as a share repurchase? Use the difference in share price for each scenario as your comparison. (5 marks)