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Mercury Estates is taking over Venus Housing Corp. Mercury is valued at $2,000,000, whereas Venus' total value is $1,000,000. Due to the similarities in their

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Mercury Estates is taking over Venus Housing Corp. Mercury is valued at $2,000,000, whereas Venus' total value is $1,000,000. Due to the similarities in their operations, Mercury expects a reduction in administrative expenses of $20,000 per year in perpetuity. It is willing to buy Venus for $1,400,000 in cash. Mercury's cost of capital is 12%. Attempt 1/10 for 10 pts. What is the net cost of the deal to Mercury? Attempt 1/10 for 10pts. If the company pays cash for the acquisition, what is the net present value of the deal

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