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ABC is considering acquiring XYZ and has compiled this information on XYZ : The applicable tax rate is 21 percent and the terminal value of

image text in transcribed ABC is considering acquiring XYZ and has compiled this information on XYZ : The applicable tax rate is 21 percent and the terminal value of XYZ as of Year 3 is $2.5 million. What is the NPV of this acquisition if the WACC is 7.1 percent and the acquisition cost is $2.25 million

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