The Sweet Shoppe and Candy Land Are All-Equity Firms

The Sweet Shoppe and Candy Land are all-equity firms. The Sweet Shoppe has 500 shares outstanding at a market price of $96 a share. Candy Land has 2,500 shares outstanding at a price of $24 a share. The Sweet Shoppe is acquiring Candy Land for $62,000 in cash. The incremental value of the acquisition is $3,600. What is the net present value of acquiring Candy Land to The Sweet Shoppe?

A) $1,100
B) $1,600
C) $2,700
D) $4,200
E) $5,700