Fly$-$By$-$Night Couriers is analyzing the possible acquisition of Flash$-$in$-$the$-$Pan Restaurants. Neither firm has debt. The forecasts of Fly$-$By$-$Night show that the purchase would increase its annual aftertax cash flow by $$350,000$ indefinitely. The current market value of Flash$-$in$-$the$-$Pan is $$9$ million. The current market value of Fly$-$By$-$Night is $$25$ million. The appropriate discount rate for the incremental cash flows is $7$ percent. Fly$-$By$-$Night is trying to decide whether it would offer $35$ percent of its stock or $$13$ million in cash to Flash$-$in$-$the$-$Pan.

a$.$

What is the synergy from the merger? $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$

b$.$ What is the value of Flash$-$in$-$the$-$Pan to Fly$-$By$-$Night? $($Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$

c$.$ What is the cost to Fly$-$By$-$Night of each alternative? $($Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$

d$.$ What is the NPV to Fly$-$By$-$Night of each alternative? $($Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$

e$.$ What alternative should Fly$-$By$-$Night use?

Synergy Value $=$

Value $=$

Cash Cost $=$

Stock Cost $=$

Cash NPV $=$

Stock NPV $=$