Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $130,000. Cautionary would immediately sell some of Danger's assets for $13,000 if it makes the acquisition. Danger has a cash balance of $1,300 at the time of the acquisition. If Cautionary believes it can generate after-tax cash inflows of $26,000 per year for the next 9 years from the Danger acquisition, should the firm make the acquisition? Base your recommendation on the net present value of the outlay using Cautionary's 11% cost of capital.

A. The net present value of the acquisition is $? (Round to the nearest dollar.)

B. Based on the NPV, should Cautionary make the acquisition?