Company A pays $4,000,000 in cash to acquire Company B on January 1, 2019. Company A also pays $1,000,000 for outside merger advisory services and has an earnout agreement with an expected present value of $2,000,000 as part of the acquisition. What is the total acquisition cost associated with this combination?

Select one:

$4,000,000

$5,000,000

$6,000,000

$7,000,000