RiverRocks realizes that it will have to raise the financing for the acquisition of Raft Adventures (described in Problems 20 and 21) by issuing new debt and equity. River-Rocks estimates that the direct issuing costs will amount to $7 million. How should it account for these costs in evaluating the project? Should RiverRocks go ahead with the project? Answer this question just post the Question 20& 21 for reference

20. RiverRocks (see Problem 19), whose WACC is 12%, is considering an acquisition of Raft Adventures (whose WACC is 15\%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition? Why? 21. RiverRocks' purchase of Raft Adventures (see Problem 20) 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