RiverRocks, whose WACC is 11.4%, is considering an acquisition of Raft Adventures (whose WACC is 15.4%)....
RiverRocks, whose WACC is 11.4%, is considering an acquisition of Raft Adventures (whose WACC is 15.4%). The purchase will cost $100.1 million and will generate cash flows that start at $15.9 million in one year and then grow at 3.6% per year forever. What is the NPV of the acquisition?
Homework Answers
NPV of Acquisition = Present Value of cash inflows – present value of cash outflows
= -100.1 million + 15.9 million/(11.4%-3.6%)
= -100.1 million + 203.85 million
= $103.75 million
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RiverRocks, whose WACC is 11.4%, is considering an acquisition
of Raft Adventures (whose WACC is 15.4%)....
RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures (whose WACC is 15.9%)....
RiverRocks, whose WACC is 12.1%, is considering an acquisition of Raft Adventures (whose WACC is 15.9%). The purchase will cost $102.5 million and will generate cash flows that start at $15.3 million in one year and then grow at 3.9% per year forever. What is the NPV of the acquisition? 13. The net present value of the project is $ million. (Round to two decimal places.)
RiverRocks, whose WACC is 12.7%, is considering an acquisition of Raft Adventures (whose WACC is 14.8%)....
RiverRocks, whose WACC is 12.7%, is considering an acquisition of Raft Adventures (whose WACC is 14.8%). The purchase will cost $103.1 million and will generate cash flows that start at $15.1 million in one year and then grow at 4.2% per year forever. What is the NPV of the acquisition?
RiverRocks, whose WACC is 11.7 11.7 %, is considering an acquisition of Raft Adventures (whose WACC is 15.6 15.6 %). The purchase will cost $ 100.7 $100.7 million and will generate cash flows that sta...
RiverRocks, whose WACC is 11.7 11.7 %, is considering an acquisition of Raft Adventures (whose WACC is 15.6 15.6 %). The purchase will cost $ 100.7 $100.7 million and will generate cash flows that start at $ 14.6 $14.6 million in one year and then grow at 3.7 % 3.7% per year forever. What is the NPV of the acquisition? The net present value of the project ? million. (Round to two decimal places.)
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