Question: Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $1.5 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carry forward.
![749_World.png](https://secure.tutorsglobe.com/CMSImages/749_World.png)
The cost of capital for the acquiring firm is 9 percent. Should the merger be undertaken?