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Kasha Incorporated is evaluating a merger with the following cash flows: Years 1 and 2 Incremental Cash Flows: $60 million each year Year 3 incremental

Kasha Incorporated is evaluating a merger with the following cash flows:

Years 1 and 2 Incremental Cash Flows: $60 million each year

Year 3 incremental cash flow: $70 million

Discount rate = 9 percent

What is the most Kasha should pay for this merger?

A. $113.96 million

B. $158.96 million

C. $159.60 million

D. $190.00 million

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