Question: Please Help. Thanks Question 4 (6 marks) Riverrocks (whose WACC is 12%) is considering an acquisition of Raft Adventures (whose WACC is 15%). RiverRocks' purchase

Please Help. Thanks Please Help. Thanks Question 4 (6 marks) Riverrocks (whose WACC is

Question 4 (6 marks) Riverrocks (whose WACC is 12%) is considering an acquisition of Raft Adventures (whose WACC is 15%). RiverRocks' purchase of Raft Adventures will cost S100 million, and will generate cash flows that start at $15 million in one year and then grow at 4% per year forever (Hint: This is a perpetuity with growth) 8 What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? Appropriate Discount Rate Why? h. What is the NPV for this acquisition? NPV

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