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Worldwide Sclentific Equipment is considering a cash acquisition of Medical Labs for $2.2 million. Medical Labs will provide the following pattern of cash inflows and
Worldwide Sclentific Equipment is considering a cash acquisition of Medical Labs for $2.2 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. Use ARpendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. Years 1 to 5 6 to 15 16 to 25 Cash inflom (aftertax) $210,000 $239,069 $270,000 Synergistic benefits (aftertax) 26,000 36,069 $6,000 The cost of capital for the accuiring firm is 12 percent. a. Compute the net present value. Note: Negotive amount should be indicated by a minus sign. Enter your answer in dollars not in millions. Do not round intermediate colculations. Round
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