$J$ & J Enterprises is considering a cash acquisition of Patterson Steel Company for $$6,500,000.$ 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.

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.

Net present value

b$.$ Should the merger be undertaken?

$$ Yes

$$ No