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Amazon.com, Inc. is evaluating the acquisition of a smaller e-commerce competitor. The acquisition target has an estimated value of $3 billion, and Amazon plans to

Amazon.com, Inc. is evaluating the acquisition of a smaller e-commerce competitor. The acquisition target has an estimated value of $3 billion, and Amazon plans to finance the acquisition through a combination of cash reserves and debt financing. If successful, the acquisition is expected to generate additional annual revenues of $500 million for Amazon.com, Inc. for the next five years. Calculate the expected return on investment (ROI) for Amazon.com, Inc., assuming a cost of debt of 6% and a cost of equity of 10%.

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