Madou is a leading tech company. It is considering expanding its business to new markets. Specifically, it is examining

[answerhappygod]

Madou is a leading tech company. It is considering expanding its
business to new markets. Specifically, it is examining the
following three options:
Investment Opportunities for Madou
(all figures in $ million)
Market A
Market B
Market C
Investment cost now
100
130
170
Free cash flow in year 1
10
20
25
Free cash flow in year 2
15
25
30
Free cash flow in year 3
20
27
33
Terminal growth rate
(for year 4 and beyond)
4%
1%
3%
Madou aims at a 15% cost of capital. It has set aside a $300
million budget for the above possible expansions.
Answer the following 3 questions:
(6 points) Compute the net present values (NPVs) for each of the
three markets.
(2 points) Which of the three options has/have an internal rate
or return (IRR) higher than Madou’s cost of capital? (Hint:
you can answer the question without calculation.)
(4 points) What is Madou’s best expansion strategy? That
is, to which one(s) of the three markets should Madou expand?
Show your argument through calculation carefully.