Mrs. Mancini, the CEO of Mancini Industries Corporation (MIC), plans to acquire Edoardo Manufacturing Company (EMC), a company that produces earmuffs. Mrs. Mancini asks one of his executives, Mrs. Bonucci, to determine the maximum price that MIC should pay to acquire EMC. After a few months of research, Mrs. Bonucci concluded that the expected useful life of EMC is 20 years, at which point MIC can sell EMC for $4,000,000. Mrs. Bonucci estimates annual sales of 500,000 units of earmuffs for EMC, with a unit price of $13.672 to start. In addition, she is confident that this price can be easily raised at a rate of 2.18% per year over 20 years without affecting the annual sales. Mrs. Bonucci plans to finance the acquisition by selling a series of bonds with an after-tax yield to maturity of 10%.