RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures? (whose WACC is 14.4%). The purchase will cost $104.5 million and will generate cash flows that start at $14.6 million in one year and then grow at 3.5% per year forever. What is the NPV of the? acquisition?

Answer rating: 100% (QA)

The NPV of the acquisition of Raft Adventures is calculated below In the gi... View the full answer