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

Eades Logistics Corp., which is considering the acquisition of Len Corp., estimates that acquiring Len 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$,$$$12\mathrm{.}0,$$$14\mathrm{.}4,$$$18\mathrm{.}0$