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River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) -

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River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) - $50.6 $9.9 $19.1 $20.1 $15.8 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? The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) - $50.6 $9.9 $19.1 $20.1 $15.8 Year 0 1 N 3 4 B. Cash Flows (millions) - $50.6 - $9.9 -$19.1 - $20.1 -$15.8 Year o 1 N 3 4 C. Cash Flows (millions) $50.6 -$9.9 -$19.1 - $20.1 -$15.8 Year O 1 N 3 4 D. Cash Flows (millions) $50.6 $9.9 $19.1 $20.1 $15.8

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