Kasha Inc Is Evaluating a Merger with the Following Cash Flows

question 113

Multiple Choice

Kasha Inc. is evaluating a merger with the following cash flows:
-Years 1 and 2 Incremental Cash Flows: $60 million each year
-Year 3 incremental cash flow: $70 million
-Discount rate = 9 percent
What is the most Kasha should pay for this merger?

• A) $113.96 million
• B) $158.96 million
• C) $159.60 million
• D) $190.00 million

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Definitions:

Persuasive Language

Language that is used to convince or influence the audience to adopt a certain point of view or take a specific action.

Promoting Idea

The process of sharing and spreading a concept or notion to gain support or adoption.

Emotional Appeals

Persuasion techniques that aim to elicit an emotional response from the audience to influence their attitudes or behaviors.

Persuasive Business Messages

Communications designed to influence the thoughts, feelings, or actions of the business audience.