6. This question is based on "Landmark Facility Solutions". Assume the following forecast is made by the Task force of Broadway regarding the acquisition deal of Landmark: For Broadway, the task force suggests that: Due to premium pricing strategy, its revenue would decline by 8% in 2015, 2016, 2017, and then grow at 5% thereafter. Premium pricing strategy would improve Broadway's operating margin to 4% in 2015, 4.5% in 2016 and 2017, and 5% thereafter. Change in net working capital would be 0.5 million in 2015 and stays at the same level thereafter. Capital expenditure were expected to remain at 1% of annual sales. Depreciation would grow by $300,000 a year. For Landmark, the task force suggests that: Landmark's net working capital would be 6% of sales from 2015 to 2018 and 6.5 in 2019 and thereafter. Its gross margin would be 5.5% in 2015, 6% in 2016, 6.5% in 2017 and thereafter its operating expenses as a percentage of sales would remain constant at 1%. Depreciation would grow by $200,000 a year. Capital expenditure were expected to be at 1.5% of annual sales in 2015 and thereafter change in net working capital would be 1 million in 2015 and stays at the same level thereafter. Based on these predictions (hint: use 8.4% as the discount rate for future cash flows) 1.what is the value of Landmark to Broadway? 2.What is the total amount of synergy of this merger? 3.What is the NPV of this merger if the cost to buy Landmark is $80 million? 4.If the discount rate for future cash flow is 6.5%, what would be your answer for part (2)? Provide numerical answers to each question and show your work for each part please