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RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures (whose WACC is 15.3%). What is the appropriate discount rate for RiverRocks to

RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures (whose WACC is 15.3%).

What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why?

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