Below is information on the potential merger between two firms.

Two acquisition payments are proposed :

100% cash or 100% stock acquisition.

Acquiring Firm Target Firm

Shares Outstanding 4800 2300

Share Price 85 44

Synergy Benefits 7500

Option 1: Cash Acqusition Price 47

Option 2: Stock Acquisition Exchange Ratio 2 for 3

What is NPV of the merger if two firms merged using 100% cash acquisition?

Please show work