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Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total after-tax annual

Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total after-tax annual cash flows by $2.4 million indefinitely. The current market value of Teller is $45 million, and the market value of Penn is $85 million. The appropriate discount rate for the incremental cash flows is 10%. Penn is trying to decide whether it should offer 40% of its stock or $61 million in cash to Teller's shareholders.

What is the NPV using the equity offer? (Round answer to the nearest whole number)

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