Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have no debt. Penn believes the acquisition will increase its total aftertax annual cash flows by $3 million indefinitely. The current market value of Teller is $49 million, and that of Penn is $85 million. The appropriate discount rate for the incremental cash flows is 10 percent. Penn is trying to decide whether it should offer 40 percent of its stock or $66 million in cash to Teller's shareholders. a. What is the cost of each alternative? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) Cash cost Equity cost A b. What is the NPV of each alternative? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.) A NPV cash NPV stock A c. Which alternative should Penn choose? O Stock O Cash