Question: RiverRocks, whose A C s 196, is considering an acquisition of Raft Adventures whose ACC s 14 6% What is the appropriate discount rate or

RiverRocks, whose A C s 196, is considering an acquisition of

RiverRocks, whose A C s 196, is considering an acquisition of Raft Adventures whose ACC s 14 6% What is the appropriate discount rate or i en oc s o use acquisition evaluate v The appropriate discount rate for RiveRocks to use to evaluate the acquisition is 96 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 RiverRocks will pay cash for the transaction ( B. An average WACC from RiverRocks and Raft Adventures will best account for the risk of Raft Adventures, cash flows. C. Raft Adventures' WACC is the most appropriate discount rate to account for the risk of Raft Adventures cash flows O D. RiverRocks WACC is the most appropriate discount rate to account for the risk of Raft Adventures cash flows

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