Question: RiverRocks ( whose WACC is 1 1 . 6 % ) is considering an acquisition of Raft AdventuresRaft Adventures ( whose WACC is 1 5

RiverRocks (whose WACC is 11.6%) is considering an acquisition of Raft AdventuresRaftAdventures (whose WACC is 15.6%). The purchase will cost $103.8 million and will generate cash flows that start at $14.2 million in one year and then grow at 4.5% per year forever. What is the NPV of the acquisition?

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