Narnia Enterprises is considering an acquisition of Aslan Inc, motivated by the possibility of synergy. You are given the following estimates for key numbers the two firms (with all dollar values in millions):

After the merger, Narnia believes that it can sell Aslans distribution system for book value; this system accounts for $100 million in invested capital and is expected to have after-tax operating expenses of $10 million next year, without affecting growth or cost of capital.

Assuming that both companies were fairly valued before the merger and that Narnia paid a 50% premium (over value) to acquire Aslan, how much value did this merger create or destroy for Narnias stockholders?

\begin{tabular}{|l|c|c|} \hline & Narnia & Aslan \\ \hline EBIT (1-t) next year & $160 & $40 \\ \hline Expected growth rate (perpetuity) & 2% & 2% \\ \hline Invested Capital & $1600 & $500 \\ \hline Cost of capital & 8% & 8% \\ \hline \end{tabular}