Firms X and Z are perfectly competitive all-equity firms each with a 15% cost of capital. Firm X would like to acquire Firm Z. Each firm has estimated annual pre-tax cash flows of $280,000 for the foreseeable future. Pre-tax cash flows from the merged firm are expected to be $720,000. If the corporate tax rate is 25%, what would be the after-tax value of synergy created? OA) $1,066,667 B) $800,000 C) $2,260,000 D) $400,000 E) $1,200,000