Yam Ltd $($Y$)$ has been evaluating the acquisition of Xavier Ltd $($X$).$ The current annual

expected cash flows of Y and X are, respectively, $$1\mathrm{.}16$ million per annum in

perpetuity and $$640000$ per annum in perpetuity. These cash flows are expected to

be unaffected by the takeover. The systematic risk $($beta$)$ of Y is $0\mathrm{.}75$ and of X is $1\mathrm{.}0.$

The risk$-$free interest rate is $10$ per cent and the market risk premium is $6$ per cent.

The post$-$takeover cash flow of the merged entity is expected to be $$1\mathrm{.}95$ million per

annum in perpetuity $$ with the additional cash flows attributable to realising cost

efficiencies in the management of the assets previously owned by Xavier Ltd$.$ There is

no change to the systematic risk of those cash flows. What is the value of the benefit

to Yam Ltd shareholders from the acquisition assuming a $$500,000$ control premium

was paid to Xavier shareholders?