Suppose that two firms exist; firm A which is well-run but has few investment projects while firm B is poorly run but has lots of investment opportunities. Currently, firm A projects its cash flow to assets to be $1,000 in perpetuity while firm B projects its cash flow to assets to be $500 in perpetuity. Assuming a discount rate of 10 percent, the value of firm A is while the value of firm B is the after-tax cash flow to assets of the combined firms increases to $1,750, the combined value of the firms is while the value of firm B to firm A is ? As the number of bidder firms increases, we would expect for the net present value of the bidder firm's acquisition to while the announcement return for the target firm would , holding all else constant. $10,000;$5,000;$17,500;$2,500; decrease; increase $10,000;$5,000;$12,500;$7,500; increase; decrease $10,000;$5,000;$17,500;$7,500; decrease; increase $10,000:$5,000;$12,500;$2,500; decrease; increase