Iota Industries Is an All-Equity Firm with 55 Million Shares

Iota Industries is an all-equity firm with 55 million shares outstanding. Iota has $220 million in cash and expects future free cash flows of $70 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 10%. Iota's cost of capital is 8% and assume that capital markets are perfect. The value of Iota, if they use the $220 million to expand, is closest to ________.

A) $1155.00 million
B) $1925.00 million
C) $962.50 million
D) $770.00 million