Asset acquisition decision Zarin Priating Company is congidering the acquishiton of Freiman Press at a cash peice of $80,000, Frimiman Pross has liabities of $85,000. Freman has a iarge presa that Zarin needs; the remaining assets would be sold to net $62.000. As a result of aceuiling the press, Zacin would experience an increase in caah inflow of $22,000 per year ower the neet 11 year The firm has a 14% cost of capital. a. What is the elfective or net cost of the large press? b. If this is the caly way Zarh can obtain the large press, should the frm go atoad with the merger? c. If the firm could purchuse a press that would provide sightly better quality and $29,000 annual cash inflow for 11 years for a price of $120,000, which allomasve would you recomimend? a. The ellective or nat cost of the Large press is : (Round to the nearest dollar) b. The net present value of the merger is s (Round the nearest cont) Should Zaria go ahead with the merger to obtain the large press? (Sxiect the best answer below) No Yers c. The net present value of purchasing a new press in 5 (Round to the nearest cent) Which alternation would you recoenmend? (Select the best answer below.) Purchase the new press. Acquire the Freiman Prese