Question
RiverRocks, whose WACC is 12.2%, is considering an acquisition of Raft Adventures (whose WACC is 15.8%). The purchase will cost $ 101.7 million and will
RiverRocks, whose WACC is 12.2%, is considering an acquisition of Raft Adventures (whose WACC is 15.8%). The purchase will cost $ 101.7 million and will generate cash flows that start at $ 14.8 million in one year and then grow at 3.7 % per year forever. What is the NPV of the acquisition?
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
