Kclub has market value of $680$million and Gclub has market value of $170$ million. Merger result in cost savings of $8,500,000$ a year forever. Cost savings will grow at $5\%$ a year. Kclub proposes to buy Gclub for $306$ million. Payment will be in two years. Cost of capital is $30\%.$ K has $100$million sharea and G has $100$million shares.

Find:

A$.$ Present value of merger

B$.$ Cost to shareholders of Kclub from merger

C$.$ Npv of merger to Kclub shareholders