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Firm ABC Ltd is planning a takeover of XYZ Ltd, which operates in a different industry from ABC. The takeover will cost $43.5 million, and

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Firm ABC Ltd is planning a takeover of XYZ Ltd, which operates in a different industry from ABC. The takeover will cost $43.5 million, and is expected to generate additional cash flow of $3.6 million per year in perpetuity. Shown below are the Weighted Average Cost of Capital of the two firms. Firm WACC ABC 10.6% XYZ 5.2% What is the NPV of the acquisition of XYZ Ltd? Select one: a. $-5.24 million b. $25.73 million c. $30.53 million d. $-9.54 million

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