CautionaryTales, Inc., is considering the acquisition of Danger Corp. at its asking price of $170,000. Cautionary would immediately sell some ofDanger's assets for $17,000 if it makes the acquisition. Danger has a cash balance of $1,700 at the time of the acquisition. If Cautionary believes it can generateafter-tax cash inflows of $22,000 per year for the next 10 years from the Dangeracquisition, should the firm make theacquisition? Base your recommendation on the net present value of the outlay usingCautionary's 9% cost of capital.