CautionaryTales, Inc., is considering the acquisition of Danger Corp. at its asking price of $160,000.Cautionary would immediately sell some ofDanger's assets for $16,000if it makes the acquisition. Danger has a cash balance of $1,600at the time of the acquisition. If Cautionary believes it can generateafter-tax cash inflows of $28,000per year for the next 8years from the Dangeracquisition, should the firm make theacquisition? Base your recommendation on the net present value of the outlay usingCautionary's8%cost of capital.

A. The net present value of the acquisition is ____________? round to nearest dollar

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

YES OR NO