Lenzie Corporation, which has 1 million shares outstanding, wishes to merge with Kent Drinks with 2.5 million shares outstanding. The market prices for Lenzie Corporation and Kent Drinks are $49 and $28 per share, respectively. The merger could create an estimated savings of $900,000 annually for the indefinite future. If Lenzie Corporation were willing to pay $30 per share for Kent Drinks, and the appropriate cost of capital is 6%, what would be the:

a) Present value of the merger gain?

b) Cost of the cash offer?

c) NPV of the offer?