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Help justify the selection of acquiring a company by utilizing NPV as a capital budgeting decision: The initial investment is 10% of the total market
Help justify the selection of acquiring a company by utilizing NPV as a capital budgeting decision:
The initial investment is 10% of the total market value of $1.026T.
Assume a 5% constant growth rate for the next three years based on 2013 FCF, and the investment rate for the companies is 8%.
Please show all your work, thank you!!
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