Pizza Place, a national pizza chain, is considering purchasing a smaller chain, Western Mountain Pizza. Pizza Place’s analysts project that the merger will result in incremental cash flows of $1.5 million in Year 1, $2 million in Year 2, $3 million in Year 3, and $5 million in Year 4. In addition, Western’s Year 4 cash flows are expected to grow at a constant rate of 5% after Year 4. Assume that all cash flows occur at the end of the year. The acquisition will be made immediately if it is undertaken. Western’s post-merger beta is estimated to be 1.5, and its post-merger tax rate would be 25%. The risk-free rate is 6%, and the market risk premium is 4%. What is the value of Western Mountain Pizza to Pizza Place?