Velcro Saddles is contemplating the acquisition of Skiers' Airbags Inc. The values of the two companies as separate entities are $20 million and $10 million, respectively. Velcro Saddles estimates that by combining the two companies, it will reduce marketing and administrative costs by $500,000 per year in perpetuity. Velcro Saddles is willing to pay $14 million cash for Skiers. The opportunity cost of capital is 8% a. What is the gain from the merger? (Enter your answer In millions rounded to 2 decimal places.) Gain from the merger S 38.25 million b. What is the cost of the cash offer? (Enter your answer in millions.) Cost of the cash offer s million c. What is the NPV of the acquisition under the cash offer? (Do not round Intermediate calculations. Enter your answer In millions rounded to 2 decimal places.) NPV million