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Amazon is considering acquiring a logistics technology firm for $900 million which is a 30% premium over the equity value of the target, pre-acquisition. The

Amazon is considering acquiring a logistics technology firm for $900 million which is a 30% premium over the equity value of the target, pre-acquisition. The synergistic benefits are expected to equal zero in the first two years and then is expected to equal $60 million in year 3. After year 3, the synergistic benefits are expected to grow by 2% per year in perpetuity, and the appropriate required return is 15% per year. Provide an equation (with all inputs) that you would use to determine the expected NPV of this acquisition?

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