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You are a financial manager at Cisco and are trying to assess the following project. The project will require a $70 million initial investment and

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You are a financial manager at Cisco and are trying to assess the following project. The project will require a $70 million initial investment and will generate free cash flows in years 1-5 as shown in the table below. Cisco maintains a constant debt-to-enterprise value ratio of 45% and its current WACC is 10.3%. Assuming that Cisco takes the project, by how much will Cisco's enterprise value increase as a result of taking the project? (Select one) Free Cash Flows for New Project (in $ million) Year 0 1 2 3 5 FCF (in $ millions) (70.00) 5.00 20.00 50.00 40.00 30.00 4 $103.63 million $33.63 million $46.63 million $75 million

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