Your company is thinking about acquiring another corporation.You have two choices%u2014the cost of each choice is $250,000.You cannot spend more than that, so acquiring both corporations is not an option.The following are your critical data:
Corporation A
- Revenues = $100,000 in year one, increasing by 10% each year
- Expenses = $20,000 in year one, increasing by 15% each year
- Depreciation expense = $5,000 each year
- Tax rate = 25%
- Discount rate = 10%