Carlisle's Market has a market value of $429,000 while Food World's market value is $191,000.Carlisle's just acquired Food World for $200,000 cash.What is the net present value of the acquisition if the merger creates $28,000 of synergy from cost efficiencies?
A)$19,000
B)$17,000
C)-$9,000
D)$37,000
E)$219,000

Question

Quizplus · Accepted Answer

NPV = $191,000 + 28,000 - 200,000 = $19,000

Carlisle's Market Has a Market Value of $429,000 While Food