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Please also help me answer: 1. The net present value of the project is $__ 2. RiverRocks (should/ should not) take on this project because
Please also help me answer:
1. The net present value of the project is $__
2. RiverRocks (should/ should not) take on this project because the NPA is (positive/ negative)
WP 13-19 (similar to) Question Help River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) - $50.4 $9.9 $19.2 $19.9 $14.3 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.1%. Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) $50.4 - $9.9 - $19.2 - $19.9 - $14.3 Year 0 1 2 3 4 B. Cash Flows (millions) $50.4 $19.9 $14.3 $9.9 + 1 $19.2 + 2 Year 0 3 4 O C. Cash Flows (millions) - $50.4 - $19.2 - $19.9 - $14.3 - $9.9 + 1 Year 0 2 3 4 OD. Cash Flows (millions) - $50.4 $9.9 $19.2 $19.9 $14.3 Year 2. 3 4Step by Step Solution
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