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You are a financial manager at Cisco and are trying to assess the following project. The projoct wil require a $70 milion initial investment and
You are a financial manager at Cisco and are trying to assess the following project. The projoct wil require a $70 milion initial investment and wili generate free cash flows in years 1-5 as shown in the table below. Cisco maintains a constant debt-to-enterprise value rato 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) $103.09 milion $3363 million S46. 63 milion $75 million
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