find NPV. Benson Oil is being considered for acquisition. The combination, Dodd believes, would increase its cash flows by 25,000 for eqch of the next 5 years and by 58000 for each of the following 5 years. Benson has high financial leverage, and ee can expect its cost of capital to increase from 12% to 15% if the merger is undertaken. The cash price of Benson is $115,000.

a. The net present value of the merger is $ (Round to the nearest cent.) Would you recommend the merger? (Select the best answer below.) . Yes b. The net present value of purchasing the new equipment is 5 (Round to the nearest cent.) Which alternative would you recommend? (Select the best answer below.) Acquire Benson ON Purchase the new equipment