Penn Corp. is analyzing the possible acquisition of Teller Company. Both believes the acquisition will increase its total aftertax annual cash flow by $998,202.7 indefinitely. The current market value of Teller is $26,935,331 and that of Penn is $61,622,963. The appropriate discount rate for the incremental cash flow is 15.2%. Penn is trying to decide whether it should offer 33% of its stock or $36,667,469 in cash to Teller's shareholders.

What is the NPV of the stock offer?

HINT: Subtract the equity cost (as computed in the previous problem) from the value of the combined firm.