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 2,700 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) $1,600
B) $6,400
C) $6,700
D) $7,200
E) $7,700