qown wm save this response. Question 13 of 31 estion 13 1 points Save As A regional restaurant chain, Club Caf, is considering purchasing a smaller chain, Sally's Sandwiches, which is currently financed using 20% debt at a cost of 8% Club Caf's analysts project that the merger will result in incremental free cash flows and interest tax savings of $2 million in Yoar 1, $4 million in Year 2, S5 million in Year 3, and $117 million in Year 4. (The Year 4 cash flow includes a horizon value of $107 million.) The acquisition would be made immediately, if it is to be undertaken. Sally's pre-merger beta is 2.0, and its post-morger tax rate would be 34%. The risk-free rate is 8%, and the market risk premium i 4%. What is the appropriate rate for use in discounting the free cash flows and the interest tax savings? 12.0% 13.9% 14.4% 16.0% 16.9% Question 13 of 31 > >> Moving to another question will save this response