Blazer Breaks,Inc. is considering an acquisition of Laker Showtime Company.Blazer expects Laker's NOPAT to be $9 million the first year with zero net investment in operating capital and zero interest expense.For the second year, Laker is expected to have NOPAT of $25 million and interest expense of $5 million.Also, in the second year only, Laker will require net investment in operating capital of $10 million to finance future growth.Laker's applicable marginal tax rate is 40 percent.After the second year , thre free cash flows and the tax shields from Laker to Blazer will both grow at a constant rate of 4 percent.The firm has determined that Laker's cost of equity is 17.5 percent.Laker currently has no debt outstanding.Assume that all cash flows are en-of-year and that the Laker acquisition will cost Blazer $45 million.Calculate the value to Blazer of Laker's eqity and determine the NPV of the proposed acquisition to Blazer? show your calculations.