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mantparn mantparn
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7 years ago
Markepta, Inc. is considering the acquisition of Management Theories, Inc. at a cash price of $1.5 million. Crimson Services, Inc. has short-term liabilities of $500,000. As a result of acquiring Crimson Services, Inc., Markepta, Inc. would acquire the copyrights of a national best-seller which would provide an estimated cash flow of $300,000 for the next five years. The firm has a cost of capital of 20 percent. The approximate net present value of this acquisition is ________.
A) $500,000
B) $480,800
C) -$102,700.55
D) -$1,102,816.36
Textbook 
Principles of Managerial Finance

Principles of Managerial Finance


Edition: 14th
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donnabandonnaban
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7 years ago
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mantparn Author
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7 years ago
Thanks again for helping me in my management class!
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3 years ago
Thank you ...this answers is helpful
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