Question: RiverRocks (whose WACC is 12.7% ) is considering an acquisition of Rat Adventures (Whose WACC is 14.1%). The purchase will cost $103.1 million and will

 RiverRocks (whose WACC is 12.7% ) is considering an acquisition of

RiverRocks (whose WACC is 12.7% ) is considering an acquisition of Rat Adventures (Whose WACC is 14.1\%). The purchase will cost $103.1 million and will generate cash flows that start at $15.2milion in one year and then grow at 3.8% per year forever. What is the NPV of the acquisition? The net present value of the project is $ miltion. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!