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ABC is considering acquiring XYZ. ABC plans to offer $44.6 billion as the purchase price, and will need to raise $1.5 billion in issuance costs

ABC is considering acquiring XYZ. ABC plans to offer

$44.6 billion as the purchase price, and will need to raise $1.5 billion

in issuance costs (to be paid as the transaction closes). The

acquisition will result in incremental FCF of $1.8 billion in the first year

and will grow by 3% per year thereafter. Find the NPV:

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