The Annual After-Tax Free Cash Flow from the Acquisition by Pacific

The annual after-tax free cash flow from the acquisition by Pacific Care of Universal Health is projected to be $12 million.These flows are expected to continue for 20 years.No value is placed on cash flows beyond 20 years.If the appropriate risk-adjusted discount rate for the merged firm is 15 percent, what is the maximum amount Pacific Care should pay to acquire Universal Health?

A) $79,476,000
B) $70,164,000
C) $75,108,000
D) cannot be determined from the information provided