Question: RiverRocks (whose WACC is 12.4% ) is considering an acquisition of Raft Adventures (whose WACC is 15.4% ). The purchase will cost $102.7 million and
RiverRocks (whose WACC is 12.4% ) is considering an acquisition of Raft Adventures (whose WACC is 15.4% ). The purchase will cost $102.7 million and will generate cash flows that start at $15.7 million in one year and then grow at 4.1% per year forever. What is the NPV of the acquisition? The net present value of the project is $ million. (Round to two decimal places.)
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