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A firm is considering acquiring a competitor. The firm plans on offering $200 million for the competitor The firm will need to issue new debt

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A firm is considering acquiring a competitor. The firm plans on offering $200 million for the competitor The firm will need to issue new debt and equity to finance the acquisition. You estimate the issuance costs to be $20 million. The acquisition will generate an incremental free cash flow of $30 million in the first year and this cash flow is expected to grow at an annual rate of 3% forever If the firm's WACC is 14%. what is the value of this project? A. $79 million B. $92 million C. $66 million D. $53 million

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