A company is planning to open 100 new outlets that are expected to generate, in total, $15 million in free cash flows per year, with a growth rate of 3% in perpetuity.

Question

A company is planning to open 100 new  outlets that are expected to generate, in total, $15 million in free cash flows per year, with a growth rate of 3% in perpetuity.

If the company’s WACC is 10%, what is the NPV of this expansion?