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8. Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual cash flows by

8. Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual cash flows by $118,670 indefinitely. The current market value of Firm T is $5,812,510 whereas that of Firm A is $9,541,290. The appropriate discount rate for evaluating the incremental cash flows is 10.74%. If Firm A offers 34.10% of its stock to Firm T's shareholders, what will be the NPV of this acquisition to Firm A?

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