J & J Enterprises is considering a cash acquisition of Patterson Steel Company for $4,200,000. Patterson will provide the following pattern of cash inflows and synergistic benefits for the next 20 years. There is no tax loss carryforward. Use Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. Cash inflow (aftertax) Synergistic benefits (aftertax) 1 to 5 $ 460,000 42,000 Years 6 to 15 $ 620,000 62,000 16 to 20 $ 820,000 72,000 The cost of capital for the acquiring firm is 11 percent. a. Compute the net present value. Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places. es Net present value b. Should the merger be undertaken? Yes No