RiverRocks (whose WACC is 12.1%) is considering an acquisition of Raft Adventures (whose WACC is 14.9%). The purchase will cost $102.7 million and will generate cash flows thatstart at $14.5 million in one year and then grow at 3.6% per year forever. What is the NPV of the acquisition?The net present value of the project is $million. (Round to two decimal places.)

Name: RiverRocks (whose WACC is 12.1%) is considering an acquisition of Raf
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Description: RiverRocks (whose WACC is 12.1%) is considering an acquisition of Raft Adventures (whose WACC is 14.9%). The purchase will cost $102.7 million and will generate cash flows thatstart at $14.5 million in one year and then grow at 3.6% per year forever

Net present value is the difference between the present value of cash flow and cost of purchase.

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erRocks (whose WACC is 12.1%) is considering an acquisition of Raft Adventures (whose WACC is 14.9%). The purchase will cost $102.7 mil rt at $14.5 million in one year and then grow at 3.6% per year forever. What is the NPV of the acquisition? e net present value of the project is $ million. (Round to two decimal places.)

erRocks (whose WACC is 12.1%) is considering an acquisition of Raft Adventures (whose WACC is 14.9%). The purchase will cost $102.7 mil rt at $14.5 million in one year and then grow at 3.6% per year forever. What is the NPV of the acquisition? e net present value of the project is $ million. (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter23: Corporate Restructuring

Section: Chapter Questions

Problem 11P

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