CautionaryTales, Inc., is considering the acquisition of Danger Corp. at its asking price of $200,000.

CautionaryTales, Inc., is considering the acquisition of Danger Corp. at its asking price of $200,000. Cautionary would immediately sell some of Danger's assets for $20,000 if it makes the acquisition. Danger has a cash balance of $2,000 at the time of the acquisition. If Cautionary believes it can generate after-tax cash inflows of $26,000 per year for the next 8 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 11%cost of capital.