RiverRocks purchase of Raft Adventures (from Problem 18) will cost $100 million, but will generate cash flows

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RiverRocks’ purchase of Raft Adventures (from Problem 18) will cost $100 million, but will generate cash flows that start at $15 million in one year and then grow at 4% per year forever. What is the NPV of the acquisition?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:16 AM

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RiverRocks purchase of Raft Adventures (from Problem 18) will cost $100 million, but will generate cash flows

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Fundamentals of Corporate Finance

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