Gekko Properties is considering purchasing Teldar Properties.Gekkos analysts pro

Gekko Properties is considering purchasing Teldar Properties.Gekkos analysts project that the merger will result inincremental after-tax net cash flows of $2 million $4 million $5million and $10 million over the next four years. Theterminal value of the firms operations as of Year 4 is expectedto be $107 million. Assume all cash flows occur at the end ofthe year. The acquisition would be made immediately if it isundertaken. Teldars post-merger beta is estimated to be 2.0and its post-merger tax rate would be 35%. The risk-free rateis 6% and the market risk premium is 5.5%. What is the valueof Teldar to Gekko Properties?