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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) - $49.5 $9.2 $19.6 $20.9 $14.9 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.9%. Should it take on this project? Why or why not? Year 0 1 2. 3 4 O C. Cash Flows (millions) $49.5 - $9.2 - $19.6 - $20.9 - $14.9 Year 1 2 3 4 O D. Cash Flows (millions) - $49.5 -$9.2 -$19.6 - $20.9 - $14.9 Year 0 2 3 The net present value of the project is $ million. (Round to three decimal places.)

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