Question: RiverRocks ( whose WACC is 1 2 . 7 % ) is considering an acquisition of Raft Adventures ( whose WACC is 1 4 .

RiverRocks (whose WACC is 12.7%) is considering an acquisition of Raft Adventures (whose WACC is 14.8%). What is the appropriate discount rate for RiverRocks to use to evaluate the acquisition?

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