Jupiter Gas Company is planning to acquire Saturn Water Company. The additional pre-tax income from the acquisition will be $100,000 in the first year, but it will increase by 2% in future years. Because of diversification, the beta of Juniper will decrease from 1 to 0.9. Currently the return on the market is 12% and the risk-free rate is 6%. What is the maximum price that Jupiter should pay for Saturn? The tax rate of Jupiter is 35%.