Asset acquisition decision. Zatin Printing Company is considering the acquisifion of Freman Press at a cash prico of $60,000. Frelman Press has fabulies of S86,000. Frelman has a large press that Zarin needs; the remaining assels would be sold to net 568.000. As a fesut of acquiring the press, Zarin would experience an increase in cash intow of 530,000 per year over the next 10 years. The firm has a 16% cost of capial. a. What is the effective or net cost of the large press? b. If this is the only way Zarin can obeain the large prest, should the firm go ahead with the morgor? c. If the firm could purchase a press that would provide slightly betier quality and $36,000 annual cash inflow for 10 years for a price or $120,000, which allernative would you recommond? a. The effective or net cost of the large press is : (Round to the nearest dollac) b. The net present value of the merger is (Round to the nearest cent.) Should Zarin go ahead with the merger to obtain the large peess? (Seleci the best answer below.) Yes No The net present value of purchasing a new press is 5 (Round to the neavest cent.) Which altemative would you recomnend? (Select the best answer below.) Purchase the new press. Acquire the Freiman Press