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6. MH Heating and Air is looking at acquiring GK Heating and Air. Analysis shows that the acquisition would increase MH Heating aftertax cash flow

6. MH Heating and Air is looking at acquiring GK Heating and Air. Analysis shows that the acquisition would increase MH Heating aftertax cash flow by $400,000 indefinitely. The current market value of MH Heating and GK Heating is $10 million and $6 million respectively. The appropriate discount rate is 10%. How much should MH Heating & Air offer for GK in an all cash acquisition

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