Question: Would please you provide a spreadsheet solution too? Thanks Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $120,000.
Would please you provide a spreadsheet solution too? Thanks

Cautionary Tales, Inc., is considering the acquisition of Danger Corp. at its asking price of $120,000. Cautionary would immediately sell some of Danger's assets for $12,000 if it makes the acquisition. Danger has a cash balance of $1,200 at the time of the acquisition. If Cautionary believes it can generate after-tax cash inflows of $24,000 per year for the next 9 years from the Danger acquisition, should the firm make the acquisition? Base your recommendation on the net present value of the outlay using Cautionary's 12% cost of capital. (Round to the nearest dollar.) The net present value of the acquisition is $ Based on the NPV, should Cautionary make the acquisition? (Select the best answer below.) o Yes No
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