Question: RiverRocks, whose WACC is 11.6 % 11.6%, is considering an acquisition of Raft Adventures(whose WACC is 15.3 %). What is the appropriate discount rate for

RiverRocks, whose WACC is 11.6 %

11.6%, is considering an acquisition of Raft Adventures(whose WACC is 15.3 %). What is the appropriate discount rate for RiverRocks to use to evaluate theacquisition? Why?

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