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 $$1\mathrm{.}45$ million indefinitely. The current market value of Teller is $$31\mathrm{.}5$million, and that of Penn is $$53$ million. The appropriate discount rate for the incremental cash flows is $10$ percent. Penn is trying to decide whether it should offer $40$ percent of its stock or $$44\mathrm{.}5$ million in cash to Teller's shareholders. a$.$ What is the cash cost of each alternative? b$.$ What is the NPV of each alternative?

Aftertax annual cash flow $$1,450,000$

Teller market value $$31,500,000$

Penn market value $$53,000,000$

Discount rate : $10\%$

Stock offer $40\%$

Cash offer $$44,500,000$

Give me the steps to calculate the following$1$ whats the value of combined firm $2$Cash Cost$3$ Equity Cost $4$Npv Cash $5$NPV stock