w possible Cash acquisition decision Benson Oil is being considered for acquisition by Dodd Oil The combination, Dodd believes would increase its cash inflows by $30,000 for each of the need 5 years and by $52.000 for each of the following 5 years Benson has high financial loverage, and Dodd can expect its cost of capital to increase from 12% to 15% if the merger is undertaken the cash price of Benson is $120,000 a. Would you recommend the merger? b. Would you recommend the merger Dodd could use the $120,000 to purchase equipment that will retum cash inflows of $40,000 per year for each of the next 10 years? a. The net present value of the mergeris (Round to the nearest cent) Would you recommend the merger? (Select the best answer below) Yes b. The nel present value of purchasing the new equipment is su Round to the nearest cent) Which alternative would you recommend? (Select the best answer below) Purchase the new equipment Acquire Benson Ol ra Overall Scoreo O