J & J Enterprises is considering a cash acquisition of Patterson Steel Company for $6,400,000. 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. 1 to 5 $ 680,000 64,000 Years 6 to 15 $ 840,000 84,000 16 to 20 $ 955,000 94,000 Cash inflow (aftertax) Synergistic benefits (aftertax) The cost of capital for the acquiring firm is 10 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.

I \& Enterprises is considering a cash acquisition of Patterson Steel Company for $6,400,000. Patterson will provide the following pattern of cash inflows and synergistic benefits for the next 20 years. There is no tax loss camyorward Use Anpencix D as an approximate answer but calculate your final answer using the formula and financial calculator methods. The cost of capital for the acquiring firm is 10 percent. Q. Compute the net present value. Note: Negative amount should be indicated by o minus sign. Do not round intermediate calculotions. Round your answer to 2 decimal places