Question: RiverRocks (whose WACC is 11.5% ) is considering an acquisition of Rat Adventures (whiose WACC is 149% ). The purchase wit cost $102.1 milion and
RiverRocks (whose WACC is 11.5% ) is considering an acquisition of Rat Adventures (whiose WACC is 149% ). The purchase wit cost $102.1 milion and wil generate cash flows that start at $15.6 malion in one year and then grow at 4.3% per. year forever. What is the NPV of the acquisition? The not sheseet value of the project is 5 milion. (Round to two deoimal places)
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