Problem 2: Susie's Pizza is analyzing the possible acquisition of Janet's Electric. The projected cash flows to debt and equits expected from the merger are as follows: Year(s) CF 1 $150.000 2. 170.000 3 200,000 4 200.000 5,6. .. 6% growth per year The current market price of Janet's debt is $800.000. the risk-free rate is 8%, the required return on the market is 12%, and the beta of the firm being acquired is 15. a Determine the maximum price (NPV) Susie can afford to pay. b. If Janet's current equity value is $1,100.000 and she demands a 30% premium, will the merger take place