Firm Delta is being acquired by Firm Gamma. Both firms are currently 100% equity financed. The expected value of synergy of this acquisition is $1600. Delta has 1200 shares of stock outstanding at a price of $22 a share. Gamma has 3100 shares of stock outstanding at a price of $50 a share. What is NPV of this acquisition for Gamma, given that the actual cost of the acquisition using stock is $27,575?

a. $425

b. $377

c. $289

d. $436

e. $407