Merger analysis $-$ Adjusted present value $($APV$)$ approach

WIzard Inc., which is considering the acquisition of Global Satellite Corp. $($GSC$),$ estimates that acquiring GSC will result in an incremental value for the firm. The analysts Involved in the deal have collected the following Information from the projected financlal statements of the target company:

$\backslash$table$[[$Data Collected $($in millions of dollars$)],[,$Year $1,$Year $2,$Year $3],[$EBIT$,$$$14\mathrm{.}0,$$$16\mathrm{.}8,$$$21\mathrm{.}0$Merger analysis $-$ Adjusted present value $($APV$)$ approach

Wizard Inc., which is considering the acquisition of Global Satellite Corp. $($GSC$),$ estimates that acquiring GSC will result in an incremental value for the firm. The analysts involved in the deal have collected the following Information from the projected financial statements of the target company:

$\backslash$table$[[$Data Collected $($In millions of dollars$)],[,$Year $1,$Year $2,$Year $3],[$EBIT$,$$$14\mathrm{.}0,$$$16\mathrm{.}8,$$$21\mathrm{.}0$