Cool Autos acquired Automotive Industries in a transaction that produced an NPV of $3.7 million. This NPV represents
A) Synergy
B) Book value
C) Investment value
D) Diversification
E) None of the above

Question

Quizplus · Accepted Answer

The NPV of $3.7 million represents the synergy generated by the acquisition, which is the increase in value that results from the combination of the two companies. Therefore, the correct answer is A) Synergy.

Cool Autos Acquired Automotive Industries in a Transaction That Produced