Fly-By-Night Couriers is analyzing the possible acquisition of Flash-in-the-Pan Restaurants. Neither firm has debt. The

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Fly-By-Night Couriers is analyzing the possible acquisition ofFlash-in-the-Pan Restaurants. Neither firm has debt. The forecastsof Fly-By-Night show that the purchase would increase its annualaftertax cash flow by $370,000 indefinitely. The current marketvalue of Flash-in-the-Pan is $9 million. The current market valueof Fly-By-Night is $23 million. The appropriate discount rate forthe incremental cash flows is 8 percent. Fly-By-Night is trying todecide whether it should offer 35 percent of its stock or $13million in cash to Flash-in-the-Pan. a. What is the synergy fromthe merger? (Do not round intermediate calculations and enter youranswer in dollars, not millions of dollars, e.g., 1,234,567.) b.What is the value of Flash-in-the-Pan to Fly-By-Night? (Do notround intermediate calculations and enter your answer in dollars,not millions of dollars, e.g., 1,234,567.) c. What is the cost toFly-By-Night of each alternative? (Do not round intermediatecalculations and enter your answers in dollars, not millions ofdollars, e.g., 1,234,567.) d. What is the NPV to Fly-By-Night ofeach alternative?