The present value of net synergy is the difference between the present value of projected cash flows from sources and destroyers of value.

Question

Quizplus · Accepted Answer

This is correct. The present value of net synergy is calculated by finding the difference between the present value of the projected cash flows from the sources of value (such as increased revenue, decreased costs, etc.) and the present value of projected cash flows from the destroyers of value (such as integration costs, lost productivity during the transition period, etc.).

The Present Value of Net Synergy Is the Difference Between