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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
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 4.0 % per year forever. What is the NPV of the acquisition? The net present value of the project is $ nothing million.(Round to two decimal places.)
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