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sMID Global Investment Group (MGlobal) is a privately held investment management company. Two other investment counseling companies, which want to be acquired, have contacted MGlobal

sMID Global Investment Group (MGlobal) is a privately held investment management company. Two other investment counseling companies, which want to be acquired, have contacted MGlobal about purchasing their business. Company As price is 2 million. Company Bs price is 3 million. After analysis, MGlobal estimates that Company As profitability is consistent with a perpetuity of 300,000 a year. Company Bs prospects are consistent with a perpetuity of 435,000 a year. MGlobal has a budget that limits acquisitions to a maximum purchase cost of 4 million. Its opportunity cost of capital relative to undertaking either project is 10 percent.

Determine which company or companies (if any) MGlobal should purchase according to the NPV rule

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