RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures? (whose WACC is 14.4%). The
Fantastic news! We've Found the answer you've been seeking!
Question:
RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures? (whose WACC is 14.4%). The purchase will cost $104.5 million and will generate cash flows that start at $14.6 million in one year and then grow at 3.5% per year forever. What is the NPV of the? acquisition?
Related Book For
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett
Posted Date: