Asset acquisition decision Zarin Printing Company is considering the acquisition of Freiman Press at a cash price of $40,000. Freiman Press has labilites of $92,000. Freiman has a large press that Zarin needs; the remahing assets would be sold to net $83,000. As a result of actuiring the press. Zarin would experience an increase in cash infow of $24,000 per year over the next 13 years The firm has a 15% cost of capital. a. What is the effective or net cost of the large press? b. It this is the colly way Zarin can obtain the large press, should the firm go ahoad with the merger?. c. If the frm could purchase a press that would previde stphty betler qualty and $29,000 annual cash inflow for 13 years for a price of 580,000 , which alsemative would you recommend? a. The effective or net cost of the large press is 1 (Round to the nearost dollar) b. The ant present value of the merper is 5 (Round to the nearest cent) Should Zarin go ahead with the merger to obtain the large press? (leolect the best anwwer below) Yon No The net preient value of purchating a new press is 4 (riound to the nearest cent) Which anemative wouls you tecommend? (5oloct the best antwer below) Purchase the new press Acgute the Freiman Prese