Managers conclude that the combination of two firms will expand revenues through cross-selling of products, efficient exploitation of brands, and geographic and product line extension. They forecast new revenues of $100 million in the first year and $200 million in year 2, growing at 2.5% per year thereafter. The cost of goods underlying these new revenues is 45 percent of the revenues. To achieve these synergies will require an investment of $400 million initially, and 5% of the added revenue each year, to fund working capital growth. Find the net present value of these synergies using a discount rate of 15% and a marginal tax rate of 40%.

Please complete in Excel, and show formulas as well. I want to know how the answers were formulated, not just the answers. Thank you.