The clark corporation desires to expand what is the net


The Clark Corporation desires to expand. It is considering a cash purchase of Kent Enterprises for $4.4 million. Kent has a $950,000 tax loss carryforward that could be used immediately by the Clark Corporation, which is paying taxes at the rate of 35 percent. Kent will provide $550,000 per year in cash flow (aftertax income plus depreciation) for the next 13 years. The discount rate is 11 percent. What is the Net Present Value and should this merger be undertaken.

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Financial Management: The clark corporation desires to expand what is the net
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