19 Brau Auto, a national auto parts chain, is considering purchasing a smaller chain, South Georgia Parts (SGP). Bra anabysts proect that the merger will resulk in the following incremental free cash flows, tax shields, and horizon values Year Free cash flow Unlevered horizon value Tax shield Horizon va lue of tax shield S1.5 $4.5 $4.5 $10.5 112.5 5 15 3 4.5 48 Assume that all cash flows occur at the end of the year. SGP is currently financed with 30% debt at a rate of 10%. The acquisiton would be made mrmedate y, and if it is undertaken, SGP would retain its current S22.5 millon of debt and ssue enough new debt to continue at the 30% target level. The nterest rate would remain the same SGP's pre-merger betas 20, and its post-merger tax rate would be 34%. The risk-free rate is 8%ardth market risk premium is 4%, what is the value of SGP to Brau? A. $61.96 million. B. $64.56 million. C. $92.95 million. D. $84.65 million