hHorizon Electronic Corporation is contemplating the acquisition of Potterton High$-$tech Co$.$ The values of the two companies as separate entities are $$150$ million and $$90$ million, respectively. Horizon estimates that by combining the two companies, it will reduce marketing and administrative costs by $$1,500,000$ per year in perpetuity. what is the synergy of the merger?

What is the cost of the cash offer?

What is the NPV of the acquisition under the cash offer?