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The Clark Corporation desires to expand. It is considering a cash purchase of Kent Enterprises for $2.2 million. Kent has a $630,000 tax loss caryforward

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The Clark Corporation desires to expand. It is considering a cash purchase of Kent Enterprises for $2.2 million. Kent has a $630,000 tax loss caryforward that could be used immediately by the Clark Corporation, which is paying taxes at the rate of 30 porcent. Kent will provide $330,000 per year in cash flow (ntertax income plas depreciation) for the next 25 yeeis. The discount rate is 13 percent: Use Appendix D as an approximate answer, but calculate your final answer using the formula and financial calcilator methods. a. Compute the net present value. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.) b. Should the merger be undertaken

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