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ABC Company has been thinking about acquiring XYZ Inc. Analysts at ABC have estimated that XYZ would lead to a $3,000,000 increase i (and then

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ABC Company has been thinking about acquiring XYZ Inc. Analysts at ABC have estimated that XYZ would lead to a $3,000,000 increase i (and then be worthless due to increased competition). The analysts have assessed XYZ's cash flows to be a cost ofcapital of22%. What is the most that ABC should pay for XYZ? 6. n net cash flows each year over the next 10 years as risky as those of several projects that ABC already undertakes. These projects have

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