Question: River Rocks (whose WACC is 12.1%) is considering an acquisition of Raft Adventures (whose WACC is 144%). The purchase will cost $101.9 million and will
River Rocks (whose WACC is 12.1%) is considering an acquisition of Raft Adventures (whose WACC is 144%). The purchase will cost $101.9 million and will generate cash flows that start at $14.8 million in one year and then grow at 4.3% per year forever. What is the NPV of the acquisition? The net present value of the project is million (Round to two decimal places)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
