Question: J & J Enterprises is considering a cash acquisition of Patterson Steel Company for $4,000,000. Patterson will provide the following pattern of cash inflows and synergistic benefits for the next 20 years. There is no tax loss carry forward.
![70_JJ.png](https://secure.tutorsglobe.com/CMSImages/70_JJ.png)
The cost of capital for the acquiring firm is 12 percent. Should the merger be undertaken?