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estimates of the cost synergies of a mergerYou are presented with the following estimates of the cost synergies of a merger Now, assume that CFO

estimates of the cost synergies of a mergerYou are presented with the following estimates of the cost synergies of a merger

Now, assume that CFO is performing sensitivity analysis and alters the assumed perpetual

growth rate to

- 10 %,

and the assumed discount rate to

10 % .

What will be the NPV of the cost

savings? What will be the IRR? Please show your work

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