RiverRocks’ purchase of Raft Adventures (from Problem 20) will cost $100 million, and will generate cash flows that start at $15 million in one year and then grow at 4% per year forever. What is the NPV of the acquisition?

Data from in problem 

RiverRocks (whose WACC is 12%) is considering an acquisition of Raft Adventures (whose WACC is 15%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why?