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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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