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net present value? RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow -
net present value?
RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow - $50.7 $9.9 $19.1 $20.7 $14.4 (in millions) The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.4%. Should it take on this project? Why or why not? A. Cash Flows (millions) - $50.7 $9.9 $19.1 $20.7 $14.4 Year 0 1 2 3 4 OB. Cash Flows (millions) $50.7 $9.9 $19.1 $20.7 $14.4 Year 0 1 2 3 4 OC. Cash Flows (millions) - $50.7 -$9.9 -$19.1 - $20.7 -$14.4 Year 0 1 2 3 OD. Cash Flows (millions) $50.7 -$9.9 -$19.1 - $20.7 -$14.4 Year 0 1 2 3 The net present value of the project is S-2.92 million. (Round to three decimal places.) Step by Step Solution
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