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Prada has ten milion shares outstanding. generates free cash flows of $60 million each yoar and has a cost of capital of 10%. It also

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Prada has ten milion shares outstanding. generates free cash flows of $60 million each yoar and has a cost of capital of 10%. It also has $40 milion of cash an hand. Prada wants to decide whether to repurchase stock or invent the cash in a project that generates free cash fows of $2 milion each year. Should Prada invest or repurchase the shares? A. indifterent between options B. repurchase c. invest D. cannot say for sure

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