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Intro Travel Corp, has a WACC of 12% and wants to buy Pink Umbrella, which has a WACC of 14% for $22 million Pink Umbrella

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Intro Travel Corp, has a WACC of 12% and wants to buy Pink Umbrella, which has a WACC of 14% for $22 million Pink Umbrella is expected to generato a cash flow from assets of $3 million next year which will then grow by 3% per year forever Attempt 3/99 for 10 pts. Part 1 What discount rate should Travel Corp. use to valuate Pink Umbrella? 34 decimals Submit Part 2 What is the NPV of the acquisition (in $ million)? 1+ decimals Submit

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