3. Global Tours is analyzing the possible acquisition of Eastern Vacations. Due to the improved efficiency, Global Tours estimates that the combined firm could save $600,000 of annual after tax cash flows for the indefinite future. An investment bank estimates that Global Tours are worth $30m and $15m respectively. Global Tours uses 15% opportunity cost of capital to discount its incremental cash flows. a. What is the synergy from the merger? If Global Tours offers $16m cash for Eastern Vacations, what is the premium (cost) of the merger? What is the NPV of the merger? b. If Global Tours offers 35% of the combined firm to owners of Eastern Vacations, what is the premium (cost) of the merger? What is the NPV of the merger? C