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Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual cash flows by $148,700

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Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual cash flows by $148,700 indefinitely. The current market value of Firm T is $7,775,100 whereas that of Firm A is $12,762,900. The appropriate discount rate for evaluating the incremental cash flows is 12.42%. If Firm A offers 39.70% of its stock to Firm T's shareholders, what will be the NPV of this acquisition to Firm A? $326,290 $334,877 $343,463 $352,050 $360,636

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