Delta is being acquired by Gamma. The incremental value of the acquisition is $1,600. Delta has 1,200 shares of stock outstanding at a price of $22 a share. Gamma has 3,100 shares of stock outstanding at a price of $50 a share. What is the net present value of the acquisition given that the actual cost of the acquisition using company stock is $27,575?
A) $377
B) $289
C) $436
D) $407
E) $425