Bru wa tra wa Magenta Inc. is considering acquiring Red Corp. The following information relates to Red Corp.: Net tangible assets at cost. $5,000,000 Net tangible assets at fair values $5,500,000 Average net income for the past four years. S 475,000 Normal rate of return for the industry... 8% What is the total amount that Magenta should be willing to pay for Red Corp. If average excess earnings for the past four years are to be capitalized at 14% $5,700,000 $4,600,000 goi all pei $5,750,000 $5,250,000