Question
Riverrocks, whose WACC is 12.0%, is considering an acquisition of raft adventures (whose WACC is 15.0%). The purchase will cost $100.0 million and will generate
Riverrocks, whose WACC is 12.0%, is considering an acquisition of raft adventures (whose WACC is 15.0%). The purchase will cost $100.0 million and will generate cash flows that start at $15.0 million in one year and then grow at 4% per year forever. What is the NPV of the acquisition?
The Net Present Value of the project is ....... (round to two decimal places)
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Healthcare Finance: An Introduction To Accounting And Financial Management
Authors: Louis Gapenski
6th Edition
1567937411, 978-1567937411
