Doubts

Exercise Set 07, question 3

Re: Exercise Set 07, question 3

by Julio Crego -
Number of replies: 0
The formula for the NPV is:

\(NPV=P_{AB}-(P_A+AmountPaid)\)

Note that \(P_{AB} = P_A+P_B+Synergies\)

Therefore 
\(NPV=P_B+Synergies-AmountPaid)\)

which is how they are calculated. I do not see to which formula you refer to when you mention + PV of B

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