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Tangshan Mining is considering the acquisbon of Zhengsen Mining at a cash price of $6,000,000. The primary motivation for Tangshar's purchase of Zhongsen is for

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Tangshan Mining is considering the acquisbon of Zhengsen Mining at a cash price of $6,000,000. The primary motivation for Tangshar's purchase of Zhongsen is for a special plece of driling remaining assets $6,500,000. Tangshan wil use a 15 percent cost of capital for evaluating the acquation. Based on this information, what is the net value of the special drilling equipment? Caloulate the net value of a second ahernative that would alow Tangshan to purchase a beter quality asset for $10,000,000 that would provide a $2,600,000 in atter - tax infowa for the next 5 years. Which alternative would you choose? A. ($1,795,700),(51,284,400), nother B. $1,795,700,$3,264,400, both C. ($1,795,700),($3,284,400), nether D. $1,500,000,$4,500,000,60h

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