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9. A Company is planning to buy B Company. The acquisition would require an initial investment of $721,000, but in one year B Company's after-tax

9. A Company is planning to buy B Company. The acquisition would require an initial investment of $721,000, but in one year B Company's after-tax net cash flows would increase by $36,000 and remain at this new level annually forever. Assume a cost of capital of 5 percent. Should the acquisition happen?

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