d. You are evaluating a proposed expansion project and you determine that the DCF-NPV is -RM30,000. However, by investing today, you might have a future growth option to expand further but it would cost you an additional RM70,000 in today's Ringgit) to have this option. If this future opportunity occurs, you estimate the present value of this option will be RM280,000. However, there's only a 40 percent chance of this occurring. Does the growth option make investment in the proposed project a positive NPV? (7 marks) Question 4 (20 marks) a. Explain the term merger and consolidation. (4 marks) b. Explain two (2) methods of commonly used to determine the value of the target firm. (4 marks) c. Firm C intends to acquire Firm D. The acquisition will cost Firm C RM120 million. Firm C plans to install new management, "fix" the company, and sell it at the end of 5 years. The projected incremental after-tax cash flow stream that Firm C expects to realize from the acquisition (which reflects the anticipated operating improvements) is for years 1 through 5 as follows: RM20 million, RM20 million, RM30million, RM50 million, and RM50 million. In addition, the projected after-tax proceeds from selling Firm B at the end of 5 years amount to RM240 million. i. Calculate the NPV of the acquisition, assuming a 12 percent cost of capital. (5 marks) ii. Should Firm A proceed with the acquisition