Question: RiverRocks, whose WACC is 12.5 %, is considering an acquisition of Raft Adventures (whose WACC is 15.1 %). The purchase will cost $ 103.9 million

RiverRocks, whose WACC is 12.5 %, is considering an acquisition of Raft Adventures (whose WACC is 15.1 %). The purchase will cost $ 103.9 million and will generate cash flows that start at $ 15.2 million in one year and then grow at 3.7 % per year forever. What is the NPV of the acquisition?

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