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Your company has done very well. To take it to the next level, you need to acquire another smaller company that has manufacturing capabilities you
Your company has done very well. To take it to the next level, you need to acquire another smaller company that has manufacturing capabilities you do not have. You are evaluating a possible company with a value of $2,500,000. You expect that if you acquire the value of your company will increase at 5% per year. Your company is currently valued at $15,000,000 and your investment timeframe is 4 years. If the MARR for the company is 3%, what is the present value net gain (or loss) associated with acquiring the company? O $-827500 O $-101050 O $164474 O $378740 O $427598
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