Question
RiverRocks (whose WACC is 12.4%) is considering an acquisition of Raft Adventures (whose WACC is 14.3%). The purchase will cost $102.8 million and will generate
RiverRocks (whose WACC is 12.4%) is considering an acquisition of Raft Adventures (whose WACC is 14.3%). The purchase will cost $102.8 million and will generate cash flows that start at $14.9 million in one year and then grow at 3.8% per year forever. What is the NPV of the acquisition?
The net present value of the project is _ million.(Round to two decimal places.)
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Finance For Growing Enterprises
Authors: Edward W. Davis, Roger Buckland
1st Edition
1138679941, 978-1138679948
