1. RiverRocks (whose WACC is 12.8%) is considering an acquisition of Raft Adventures (whose WACC is 15.6%). The purchase will cost $103.8 million and will generate cash flows that start at $14.1 million in one year and then grow at 3.6% per year forever. What is the NPV of the acquisition? The net present value of the project is $_____ million

2. RiverRocks (whose WACC is 12.7%) is considering an acquisition of Raft Adventures (whose WACC is 14.1%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? The appropriate discount rate for RiverRocks to use to evaluate the acquisition is___%