Both Firms Are 100% Equity-Financed

Both firms are 100% equity-financed. Firm A can acquire firm B for $82,500 in the form of either cash or stock. The synergy value of the deal is $12,500. What is the NPV of acquiring firm B when stock financing is used?

A) $3,746
B) $3,925
C) $4,122
D) $5,000
E) $5,510