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A firm expects cost savings from a merger of $1.5 million per year and increasing revenues of $1.75 million per year. The require rate of

A firm expects cost savings from a merger of $1.5 million per year and increasing revenues of $1.75 million per year. The require rate of return is 15%. What is the economic gain (answer in millions)?

a: 21.7 million

b; 3.25 million

c: 42.5 million

d. 17.3 million

e; 8.9 million

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