Question 4. Juicers Inc, is thinking of acquiring Fast Fruit Comying capital amd n NOPAT to be $9 million the fir interest expense. For the second year, Fast Fruit is expecst F interest expense of $5 million. Also, in the second year only Company. Juicers expects Fast Fruit's to have NOPAT of $25 million and rst year, with no net new investment in operating capital and no Fast Fruit will noed $10 million of operating capital. Fast Fruit's marginal tax rate is 40%. After the second 17.5%, and Fast net new investment in ear, the tree cash flows and the tax shields from Fast Fruit to Juicers will both grow at a constant rate of 4%. Juicers has determined that Fast Fruit's cost ofequity is Fruit currently has no debt outstanding. Assume that all cash flows occur at Juicers must pay $45 million to acquire Fast Fruit. What Note that you must first calculate the maximum value to Juicers of Fast Fruai the end of the year it the NPV of the proposed acquisition t's equity. a. $45.0 million b. $68.2 million e. $86.5 million d. $113.2 million e. $133.0 million