Question: River Rocks, whose WACC is 11.5%, is considering an acquisition of Raft Adventures (whose WACC is 15.1%). The purchase will cost $ 101.8 million and

River Rocks, whose WACC is 11.5%, is considering an acquisition of

River Rocks, whose WACC is 11.5%, is considering an acquisition of Raft Adventures (whose WACC is 15.1%). The purchase will cost $ 101.8 million and will generate cash flows that start at $15.3 million in one year and then grow at 4.1% per year forever. What is the NPV of the acquisition

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