Consider two firm B and T who both have 5400 and 1500 shares outstanding, respectively. The price per share for both firm B and T respectively is $47 and $19. Assume both firm have no outstanding debt. Firm B has estimated that the value of the synergistic benefits from acquiring firm T is $8,700.

If firm T is willing to be acquired for $21 per share in cash, what is the NPV of the merger?

a) $6222

b) $5252

c) $5700

d) $5279

C IS CORRECT