Question: RiverRocks, whose WACC is 11.7 11.7%, is considering an acquisition of Raft Adventures (whose WACC is 15.6 15.6%). The purchase will cost $ 100.7 $100.7

RiverRocks, whose WACC is 11.7 11.7%, is considering an acquisition of Raft Adventures (whose WACC is 15.6 15.6%). The purchase will cost $ 100.7 $100.7 million and will generate cash flows that start at $ 14.6 $14.6 million in one year and then grow at 3.7 % 3.7% per year forever. What is the NPV of the acquisition?

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