Intro It is December 2024. You work as a financial analyst for Merck & Co. and are tasked with the due diligence on the proposed acquisition of a biotech startup. You estimated the following cash flows for the startup: Expected project cash flow Year ($ million) (end of year) 2025 76.5 2026 114.75 2027 149.18 2028 179.01 2029 196.91 After 2029, cash flows are expected to grow by 3% per year. Based on the riskiness of your industry, you think that your weighted average cost of capital is 13%. The biotech firm has 5 million shares and bonds worth $120 million outstanding.