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 after-tax cash flow by $390,000 indefinitely. The current market value of Flash-in-the-Pan is $7 million. The current market value of Fly-By-Night is $22 million. The appropriate discount rate for the incremental cash flows is 8 percent. 1. What is the synergy from the merger? 2. What is the value of Flash-in-the-Pan to Fly-By-Night? Fly-By-Night is trying to decide whether it should offer 30 percent of its stock or $9 million in cash to Flash-in-the-Pan. 3. What is the cost to Fly-By-Night of each alternative? Cost of Cash? Cost of Stock? 4. What is the NPV to Fly-By-Night of each alternative? NPV of cash? NPV of stock? 5. Which alternative should Fly-By-Night use