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31: 4. Firm A is buying Firm B (i.e., Firm A is the acquirer and Firm B is the target) for cash in the amount

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4. Firm A is buying Firm B (i.e., Firm A is the acquirer and Firm B is the target) for cash in the amount of $65 million. What is the NPV of the acquisition for Firm A using the following information? Firm A value as a separate firm (PVA) Firm B value as a separate firm (PVB) Value of the merged firm (PVAB) Gain from the merger (PVAB PVA - PVB = APVAB) $122 million $59 million $195 million $14 million

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