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How do you solve these problems. Pleas show step by step. X P 13-19 (similar to) RiverRocks, Inc., is considering a project with the following
How do you solve these problems. Pleas show step by step.
X P 13-19 (similar to) RiverRocks, Inc., is considering a project with the following projected free cash flows: Year Cash Flow (in millions) S10.7 19.6 $19.4 $14.7 -S50.7 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks WACC is 12.3% Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) XA. Cash Flows (millions) $50.7 $10.7 $19.6 14.7 $19.4 Year 0 B. Cash Flows (millions) $50.7 $10.7 - $19.6 $19.4 $14.7 Year C. Cash Flows (millions) -$50.7 $10.7 $19.6 $19.4 $14.7 Year OD, Cash Flows (millions) -$50.7-$10.7-$19.6-$19.4-$14.7 Year The net present value of the project is S 2689 million. (Round to three decimal places.) RiverRocks should not take on this project because the NPV is positive (Select from the drop-down menus.)Step by Step Solution
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