Question: River Rocks, whose WACC is 11.9%, is considering an acquisition of Raft Adventures (whose WACC is 15.8%). What is the appropriate discount rate for River

River Rocks, whose WACC is 11.9%, is considering an acquisition of Raft Adventures (whose WACC is 15.8%). What is the appropriate discount rate for River Rocks to use to evaluate the acquisition? Why? The appropriate discount rate for River Rocks to use to evaluate the acquisition is %. (Round to one decimal place.) Why? (Select the best choice below.) O A. The risk-free rate will best account for the risk of Raft Adventures' cash flows since River Rocks will pay cash for the transaction. B. RiverRocks' WACC is the most appropriate discount rate to account for the risk of Raft Adventures' cash flows. O C. An average WACC from River Rocks and Raft Adventures will best account for the risk of Raft Adventures' cash flows. D. Raft Adventures' WACC is the most appropriate discount rate to account for the risk of Raft Adventures cash flows

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