Question
RiverRocks, whose WACC is 12.8%, is considering an acquisition of Raft Adventures (whose WACC is 14.2%). The purchase will cost $104.7 million and will generate
RiverRocks, whose WACC is 12.8%, is considering an acquisition of Raft Adventures (whose WACC is 14.2%). The purchase will cost $104.7 million and will generate cash flows that start at $14.7 million in one year and then grow at 3.7% per year forever. What is the NPV of the acquisition?
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
