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Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $160 comma 000.Cautionary would immediately sell some of Danger's assets

Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $160 comma 000.Cautionary would immediately sell some of Danger's assets for $16 comma 000 if it makes the acquisition.Danger has a cash balance of $1 comma 600 at the time of the acquisition.If Cautionary believes it can generate after-tax cash inflows of $26 comma 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 12% cost of capital

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