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Find the npv of roku expansion project

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Question - Roku Inc is an all-equity firm with 10 million shares outstanding. Roku has $50 million in cash and expects future free cash flows of $75 million per year. Management plans to use the cash to expand the firm's operations, which in turn will increase future free cash flows by 20%. Roku's cost of capital is 10% and assume that capital markets are perfect. Find the NPV of Roku's expansion project?

a. -200 $

b. -100 $ million

c. 100 $ million

d. 50 $ million

Reference no: EM132986132

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