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 real revenue growth of $$100mn$ in the first year and $$200mn$ in year $2$ and thereafter. The life of the project is $5$ years. The cost of goods underlying these new revenues is $45\%$ of the revenues. The expected inflation is $2\%$ per year. To achieve these synergies will require an investment of $$400mn$ initially, and $5\%$ of the added revenue each year, to fund working capital growth. The terminal valu is $$531mn.$ As part of the rationalization of expenses, some assets will be divested, generating a positive nominal after$-$tax cash flow of $$10mn$ in year $1$ and $$5mn$ in year $2.$ The marginal tax ra is $40\%.$ The analyst judges that the cash flows can be discounted at $15\%.$

Please estimate the synergy.

$5$