4. Insell Corporation is considering the acquisition of Fourier-Fox, Inc., which is in a related line of business. Fourier-Fox presently has a cash flow of $2 million per year. With a merger, synergism would be expected to result in a growth rate of this cash flow of 15 percent per year for 10 years, at the end of which level cash flows would be expected. To sustain the cash-flow stream, h e l l will need to invest $1 million annually. For purposes of analysis and to be conservative, Insell limits its calculations of cash flows to 25 years.