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Predator Company is considering the acquisition of Prey Company at a cash price of $ 6 0 , 0 0 0 . Predator has liabilities
Predator Company is considering the acquisition of Prey Company at a cash price of $ Predator has liabilities of $ Prey has a large machine that Predator needs; the remaining assets would be sold to net $ As a result of acquiring the machine, Predator would experience an increase in cash inflow of $ per year over the next years. The firm has a cost of capital. Don't forget to consider time value. What is the effective or net cost of the large machine?
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