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ANSWERS

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Subjects

English2Accounting1Finance5
Answer: a: Net present value = 740013 b: Yes
Answer:
Answer:
Answer:

J & J Enterprises is considering

a cash acquisition of Patterson Steel Company for $5,300,000.

Patterson will provide the following pattern of cash inflows and

synergistic benefits for the next 20 years. There is no tax loss

carryforward. Use

"http://lectures.mhhe.com/connect/0073530727/Images/Appendix_D.JPG">

Appendix D

.






Years










1-5


6-15


16-20




Cash inflow (aftertax)


$570,000


$730,000


$930,000




Synergistic benefits (aftertax)

53,000

73,000

83,000











The cost of

capital for the acquiring firm is 11 percent.








(a)


Compute the net present value.

(Round "PV Factor" to 3 decimal

places. Round your answer to the nearest whole number.

Negative amount should be indicated by a minus sign. Omit the "$"

sign in your response.)






Net present value



1


Answer: Step-by-step explanation:
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Answer: cStep-by-step explanation: Initial funding also known as pre-seed fund...
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