Firm A has a value of $100 million, and B has a value of $70 million. Merging the two would allow a cost savings with a present value of $20 million. Firm A purchases B for $75 million. What is the cost of this merger?
A) $30 million
B) $20 million
C) $5 million
D) $10 million
Correct Answer:
Verified
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