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Conch Enterprises is considering a cash acquisition of Shell Company for $800,000. They expect to be able to immediately use a tax loss of $300,000

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Conch Enterprises is considering a cash acquisition of Shell Company for $800,000. They expect to be able to immediately use a tax loss of $300,000 on Shell's books. They also expect that the total after-tax cash inflows plus synergistic benefits over the next ten years will be: Years 1-3 $100,000 per year Years 4-6 $80,000 per year Years 7-10 $70,000 per year Conch's corporate tax rate is 40% and its cost of capital is 10%. Required: Show whether Conch should go ahead with the acquisition based on the given information

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