Fly$-$by$-$Night Couriers is analyzing the possible acquisition of Flash$-$in$-$the$-$Pan Restaurants.$$ Neither firm has any debt.$$ The forecasts by Fly$-$by$-$Night show that the purchase would increase total annual after$-$tax cash flows by $$600,000$ indefinitely.$$ The current market value of Flash$-$in$-$the$-$Pan is $$10$ million.$$ The current market value of Fly$-$by$-$Night is $$35$ million.$$ The appropriate discount rate for any change in cash flows from the merger is $8$ percent.

What is the most that Fly$-$by$-$Night would be willing to pay for Flash$-$in$-$the$-$Pan?

Question $4$ options:

$$10,500,000$

$$19,500,000$

$$12,500,000$

$$17,500,000$