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RiverRocks, whose WACC is 11.3%, is considering an acquisition of Raft Adventures (whose WACC is 14.8%). The purchase will cost $103.9 million and will generate

RiverRocks, whose WACC is

11.3%,

is considering an acquisition of Raft Adventures (whose WACC is

14.8%).

The purchase will cost

$103.9

million and will generate cash flows that start at

$15.1

million in one year and then grow at

4.5%

per year forever. What is the NPV of the acquisition?

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