Company A and Company B have agreed to merge. The combination is projected to generate pretax cost savings of $600 million during the first year, and thereafter growing at 2%. To achieve these cost savings an investment of $5000 million (not tax deductible) must be made at the outset. Sales of redundant equipment and property are expected to bring in proceeds of $600 million in year 1 and $400 million in year 2; however, these sales will generate pretax gains (difference between market value of assets sold and book value of assets sold, which is taxed as a gain) of $100 million in the first year and $50 million in the second year. Assume the cost of capital for the combined firm is 8 percent, and a tax rate of 30 percent (you can ignore any changes in corporate depreciation). What is the net present value of all synergies (i.e. all cash flow effects of combining the firms) ?