Firm A has a value of $500 million and Firm B has a value of $300 million. Firm A has 1000 shares outstanding, and Firm B has 1000 shares outstanding. Suppose that the merger would increase cash flows of the combined firm by $5 million in perpetuity. Assuming the cost of capital for the new firm is 10%. Assume that Firm A purchases Firm B for $330 million. How much do Firm A's shareholders gain from this merger? O A. $30 million O B. $70 million O C. $20 million O D. $15 million O E. None of the above The Solar Calculator Company proposes to invest $10 million in a new calculator-making plant. Fixed costs are $3 million per year. A solar calculator costs $10 per unit to manufacture and sells for $50 per unit. If the plant lasts for three years and the cost of capital is 10%, what is the break-even level (i.e., NPV = 0) of annual sales? Assume that revenues and costs occur at the end of each year. Assume no taxes and no depreciation. O A. 244,000 units OB. 175,500 units O C. 133,000 units O D. 228,000 units