Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for $1.6 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. Use Appendix D as an approximate answer, but calculate your final answer using the formula and financial calculator methods. Cash inflow (aftertax) Synergistic benefits (aftertax). 1-5 $ 150,000 20,000 Years 6-15 $ 170,000 16-25 $210,000 30,000 50,000 The cost of capital for the acquiring firm is 11 percent. a. Compute the net present value. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Net present value b. Should the merger be undertaken? Yes No