3. J& J Enterprises is considering a cash acquisition of Patterson Steel Company for $4,500,000. Patterson will provide the following pattern of cash inflows and synergistic benefits for the next 20 years. There is no tax loss carryforward. Years 6-15 $490,000 $650,000 $850,000 1-5 16-20 Cash inflow (aftertax).. Synergistic benefits (aftertax)... 45,000 65,000 75,000 The cost of capital for the acquiring firm is 12 percent. Compute the net pres- ent value. Should the merger be undertaken? (If you have difficulty with defered time value of money problems, consult Chapter 9.)