What is the npv of the acquisition

Reference no: EM133616041

Problem: RiverRocks, whose WAGE is 11.2%, is considering an acquisition of Raft Adventures (whose WAGE is 15.3%}. The purchase will cost $101.7 million and will generate cash flows that start at $14.5 million in one year and then grow at 4.2% per year forever. What is the NPV of the acquisition?

Reference no: EM133616041

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