Please show excel formulas. Penn Corp. is analyzing the possible acquisition of Teller Company. Both firms have

no debt. Penn believes the acquisition will increase its total aftertax annual cash

flows by $$1\mathrm{.}45$ million indefinitely. The current market value of Teller is $$31\mathrm{.}5$

million, and that of Penn is $$53$ million. The appropriate discount rate for the

incremental cash flows is $10$ percent. Penn is trying to decide whether it should

offer $40$ percent of its stock or $$44\mathrm{.}5$ million in cash to Teller's shareholders.

a$.$ What is the cash cost of each alternative?

b$.$ What is the NPV of each alternative?

Input Area:

$($Use cells A$6$ to B$11$ from the given information to complete this question.$)$

Output Area:

Value of combined firm

Cash cost

Equity cost

NPV cash

NPV stock