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Intro Travel Corp. has a WACC of 11% and wants to buy Pink Umbrella, which has a WACC of 16%, for $27 million. Pink Umbrella

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Intro Travel Corp. has a WACC of 11% and wants to buy Pink Umbrella, which has a WACC of 16%, for $27 million. Pink Umbrella is expected to generate a cash flow from assets of $3 million next year, which will then grow by 3% per year forever. Part 1 Attempt 1/99 for 10 pts. What discount rate should Travel Corp. use to valuate Pink Umbrella? 3+ decimals Submit Attempt 1/99 for 10 pts. Part 2 What is the NPV of the acquisition (in $ million)? 2+ decimals Submit

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