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Milson Company is considering the purchase of MiHe Company at a price of $190,000. If Milson makes the acquisition, its after-tax net cash flows will
Milson Company is considering the purchase of MiHe 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 MiHe? answer Yes, because the NPV = $10,000 how to get NPV 10000
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