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RiverRocks (whose WACC is 12.3%) is considering an acquisition of Raft Adventures (whose WACC is 15.5%). The purchase will cost $100.6 million and will generate
RiverRocks (whose WACC is
12.3%)
is considering an acquisition of Raft Adventures (whose WACC is
15.5%).
The purchase will cost
$100.6
million and will generate cash flows that start at
$14.3
million in one year and then grow at
3.7%
per year forever. What is the NPV of the acquisition?
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