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Help Lave Question 7 Kappa Company is considering a merger with another firm. In order to enact the merger, Kappa would have to purchase the

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Help Lave Question 7 Kappa Company is considering a merger with another firm. In order to enact the merger, Kappa would have to purchase the outstanding stock from the target firm's shareholders at a total cost of $800,000, Kappa believes that the firm would provide the following revenues and costs each year for five years: Revenues $425,000 Cost of Goods Sold" $205,000 Gross Margine $220.000 Administrative Costs 552.000 Depreciation $45.000 Insurance $21.500 Net Operating income $101,500 "Cost of Goods Sold is composed entirely of cash costs Kappa also believes that there may be additional synergy-related cash flows associated with the merger due to complementarities between the two firms and the superior capabilities of Kappa's management team Kappa's discount rate is 12% What is the minimum annuat amount of synergy related cash flows required for Kappa to find the merger an attractive project! Click to view Exhite and to determine the appropriate discount factors using tables Round your answer to the nearest whole worlar amount 8 Macao

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