Consider the following premerger information about a bidding firm (Buyitall Inc.) and a target firm (Tarjay Corp.). Assume that neither firm has any debt outstanding.

	Buyitall	Tarjay
Shares outstanding	1,500	1,100
Price per share	$32	$26

Buyitall has estimated that the present value of any enhancements that Buyitall expects from acquiring Tarjay is $2,600. What is the NPV of the merger assuming that Tarjay is willing to be acquired for $28 per share in cash?

1. $400

2.$600

3. $1,800

4. $2,200

5.$2,600

6. None of the options are correct