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1 2 3 4 River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow - $50.6 $9.8

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1 2 3 4 River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow - $50.6 $9.8 $20.3 $19.9 $14.7 (in millions) The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. River Rocks' WACC is 12.2%. Should it take on this project? Why or why not? . Vall riuws ID) VJU.U ZU. 14.1 + + 2 + 3 Year 0 1 4 The net present value of the project is $million. (Round to three decimal places.)

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