Question 7 Kappa Company is considering a merger with another form. In order to enact the merger Kappe would have to purchase the outstanding stock from the target firm's shareholders at a total cost of $800,000. Kappa believes that the form would provide the folowing revenues and costs each year for five years Revenues: $425,000 Cost of Goods Sold" $205.000 Gross Margin: $220,000 Administrative Costs $52,000 Depreciation $45 000 Insurance $21.500 Net Operating Income $100500 "Cost of Goods Soid is composed entirely of cash costs Kappa also believes that there may be adational synergy related cash flows associated with the merger due to commentaties between the two firms and the superior capabilities of Kapas management team Kappa discount is 128 What is the minimum annual amount of synergy-related cash flow required for Kappe to find the merger an attractive project Click to view 1781 and Ecm2 to determine the appropriate discount factors in Round your answer to the nearest whole caramount A 1 Minum Anu Cashow