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PPlease show how to do this on excel RiverRocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3

image text in transcribedPPlease show how to do this on excel

RiverRocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) -$49.7 $9.2 $20.2 $19.6 $15.6 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 12.5%. Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) A. Cash Flows (millions) $19.6 $15.6 $49.7 H 0 $9.2 + 1 $20.2 + 2 Year 3 4 B. Cash Flows (millions) $49.7 - $9.2 -$15.6 - $20.2 + 2 - $19.6 + 3 Year 0 1 4 C. Cash Flows (millions) -$49.7 $9.2 $20.2 $19.6 $15.6 Year 0 1 N 3 4 D. Cash Flows (millions) $49.7 -$9.2 - $19.6 -$15.6 - $20.2 1 2 Year 0 1 3 4 The net present value of the project is $ million. (Round to three decimal places.)

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