Solutions to Chapter 4 Problems

(1) The best alternative for Melinda would be Dynamic because it results in $2,144 ($89,394 - $87,250) higher net present value of after-tax cash flows than offered by Argus. (2) From the corporations’ perspective, Argus’s offer provides a slightly lower after-tax cost but the difference is only $309 ($97,984 - $97,675). ................
................