Velcro Saddles is contemplating the acquisition of Skiers Airbags Inc. The values of the two companies as separate entities are $22 million and $11 million, respectively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $510,000 per year in perpetuity. Velcro Saddles can either pay $15 million cash for Skiers or offer Skiers a 49% holding in Velcro Saddles. The opportunity cost of capital is 10%.

1. What is the cost of the stock alternative? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)
2. What is its NPV under the stock offer? (Do not round intermediate calculations. A negative answer should be indicated by a minus sign. Enter your answer in millions rounded to 2 decimal places.)