Question
RiverRocks, whose WACC is 11.1%, is considering an acquisition of Raft Adventures (whose WACC is 15.1%). The purchase will cost $ 101.7 million and will
RiverRocks, whose WACC is 11.1%, is considering an acquisition of Raft Adventures (whose WACC is 15.1%). The purchase will cost $ 101.7 million and will generate cash flows that start at $ 15.3 million in one year and then grow at 4.4 % per year forever. What is the NPV of the acquisition?
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The Economic Indicator Handbook How To Evaluate Economic Trends To Maximize Profits And Minimize Losses
Authors: Richard Yamarone
1st Edition
1118204662, 9781118204665
