THIS iest: 100 pls possible Asset acquisition decision Zarin Printing Company is considering the acquisition of Freiman Press at a cash price of $45,000 Freiman Press has liabilities of $94.000 Freiman has a large press that Zarn needs, the remaining assets would be sold to not $68,000. As a result of acquiring the press, Zarin would experience an increase in cash inflow of $22,000 per year over the next 14 years. The firm has a 12% cost of capital a. What is the effective or net cost of the large press? b. If this is the only way Zarin can obtain the large press, should the firm go ahead with the merger? c. If the firm could purchase a press that would provide slightly better quality and $28.000 annual cash inflow for 14 years for a price of $90,000, which alternative would you recommend? a. The effective or net cost of the large pressis (Round to the nearest dollar) b. The represent value of the merger is (Round to the nearest cent) Should Zann go ahead with the merger to obtain the large press? (Select the best answer below) Yes No O fa Overal sco c. The net preserve value of purchasing a new pressis (Round to the nearest cont Which iterative would you recommend? (Select the best answer below) Purchase the now press Acquire the Froman Press