Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. What is the cost of this merger?

Firm A has a value of $200 million, and B has a value of $120 million.

1.	Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. What is the cost of this merger?
A.	$30 million
B.	20 million
C.	$15 million
D.	$10 million
Answer» E.

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Firm A has a value of $200 million, and B has a value of $120 million. Merging the two would allow a cost savings with a present value of $30 million. Firm A purchases B for $130 million. What is the cost of this merger?

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