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Magnus Corp wishes to acquire Coopers Ltd. Based on current stock market prices, Magnus is valued at $20,000,000 and Coopers at $8,000,000. The shareholders of
Magnus Corp wishes to acquire Coopers Ltd. Based on current stock market prices, Magnus is valued at $20,000,000 and Coopers at $8,000,000. The shareholders of Coopers are only willing to sell if they receive $9,000,000. Magnus Corp estimates the acquisition would result in annual cash flows of $2,506,076 per year for the next 5 years. The firm has a cost of capital of 10%. What would be the NPV of the acquisition? Please explain step to step, hoe you got the answer. I do not understand table. Thank you:)
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