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RiverRocks (whose WACC is 12.4%) is considering an acquisition of Raft Adventures (whose WACC is 14.8%). What is the appropriate discount rate for River Rocks

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RiverRocks (whose WACC is 12.4%) is considering an acquisition of Raft Adventures (whose WACC is 14.8%). What is the appropriate discount rate for River Rocks to use to evaluate the acquisition? Why? %. (Round to one decimal The appropriate discount rate for River Rocks to use to evaluate the acquisition is place.) Why? (Select the best choice below.) A. RiverRocks' WACC is the most appropriate discount rate to account for the risk of Raft Adventures' cash flows. B. An average WACC from RiverRocks and Raft Adventures will best account for the risk of Raft Adventures' cash flows. O C. The risk-free rate will best account for the risk of Raft Adventures' cash flows since RiverRocks will pay cash for the transaction. D. Raft Adventures' WACC is the most appropriate discount rate to account for the risk of Raft Adventures' cash flows

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