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Hi could someone explain to me why the answer to this question is C. I am having a hard time understanding the work below. Milson

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Hi could someone explain to me why the answer to this question is C. I am having a hard time understanding the work below.

image text in transcribed
Milson Company is considering the purchase of Mile Company at a price of $190,000. If Milson makes the acquisition, its after- tax net cash flows will increase by $30,000 per year and remain at this new level forever. If the appropriate cost of capital is 15 percent, should Milson buy Mike? a. Yes, because the NPV = $30,000 b. Yes, because the NPV = $200,000 c. Yes, because the NPV = $10,000 d. No, because NPV

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