Norita Inc. is planning on acquiring Corian Enterprises and you have been given the information on both companies in the table below.

	Norita	Corian
Expected after-tax Operating Income next year Invested Capital Expected growth rate Cost of capital	150 1000 3% 9%	60 500 3% 9%

The combined company will be able to increase its expected after-tax operating income by $30 million next year while leaving the invested capital, growth rates and costs of capital unaffected. Estimate the value of the combined firm in this merger. (The increase in after-tax operating income is a permanent shift)

• A.

  $ 2,750.00

• B.

  $ 2,777.52

• C.

  $ 2,844.00

• D.

  $ 3,250.00

• E.

  $ 4,000.00