CDF Inc. is contemplating the acquisition of Pogo Company. The values of the two companies as separate entities are $$20$ million and $$10$ million, respectively. CDF estimates that by combining the two companies, it will reduce marketing and administrative costs by $$500,000$ per year in perpetuity. CDF can either pay $$14$ million cash for Pogo or offer Pogo a $55\%$ holding in CDF$.$ If the opportunity cost of capital is $10\%,$