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River Rocks, Inc., is considering a project with the following projected free cash flows: 0 2 2 Year Cash Flow (in millions) - $50.8 $10.6
River Rocks, Inc., is considering a project with the following projected free cash flows: 0 2 2 Year Cash Flow (in millions) - $50.8 $10.6 $19.1 $20.4 $15.1 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 12.3%. 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) $50.8 $10.6 $19.1 $20.4 $15.1 + Year w O B. Cash Flows (millions) - $50.8 - $10.6 -$19.1 - $20.4 - $15.1 Year C. Cash Flows (millions) - $50.8 - $50.8 $10.6 $19.1 $20.4 $15.1 Year O D. Cash Flows (millions) $50.8 -$10.6 -$19.1 - $20.4 -$15.1 Year The net present value of the projec on. (Round to three decimal places.)
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