Question 9 (1 point) Firm A is analyzing the possible acquisition of Firm T. Firm A believes the acquisition will increase its total after-tax annual cash flows by $122,960 indefinitely. The current market value of Firm T is $6,092,880 whereas that of Firm A is $10,001,520. The appropriate discount rate for evaluating the incremental cash flows is 10.98%. If Firm A offers 34.90% of its stock to Firm T's shareholders, what will be the NPV of this acquisition to Firm A? $1,204,960 $1,235,084 $1,265,208 $1,295,332 $1,325,455 Previous Page Next Page Page 9 of 25