I am a little lost on this one.

Merger NPV (LO6, 7) Raleigh Couriers is analyzing the possible acquisition of Harwich Restaurants. Neither firm has debt. The forecasts of Raleigh show that the purchase would increase its annual after-tax cash flow by $425,000 indefinitely. The current market value of Harwich is $8.8 million. The current market value of Raleigh is $22 million. The appropriate discount rate for the incremental cash flows is 8 percent. Raleigh is trying to decide whether it should offer 35 percent of its stock or $12 million in cash to Harwich. a. What is the synergy from the merger? b. What is the value of Harwich to Raleigh? c. What is the cost to Raleigh of each alternative? d. What is the NPV to Raleigh of each alternative? e. Which alternative should Raleigh use