ABC is considering acquiring XYZ and has compiled this information on XYZ: Year EBIT Capital spending Increases in net working capital Depreciation 123 $318,000 $364,000 $392,000 46,500 28,000 36,200 5,500 6,500 1,200 34,000 32,100 28,700 The applicable tax rate is 30 percent and the terminal value of XYZ as of Year 3 is $2.5 million. What is PVO of this acquisition of the discount rate is 7.1 percent? $2,138,316 $3,309,482 C. $2,499,003 $3,106,048 $2,662,398 1+ Ask Expert Tutors You can ask 20 questions (will expire )