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 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.)
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