Question: Question 1 . Mergers and Acquisition Analysis [ 1 2 ] A healthcare company N O R T H E R N CARE i s

Question 1. Mergers and Acquisition Analysis [12]
A healthcare company NORTHERN CAREis considering expanding its operations by acquiring one of two firms: Firm A, a pharmaceutical research company, or Firm B, a medical device manufacturer. The company wants to ensure that the acquisition will generate a positive return. Analysts have estimated that there isa60% chance that the company will acquire Firm A, and if they do, there isan72% chance that the acquisition will succeed (i.e., generate positive returns). According to the market research there is64% that the acquisition will succeed if the company acquire Firm B.
Using the given information about the acquisitions possibilities:
Find the probability that the companys acquisition will generate a positive return. [2]

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