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River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 1 2 3 Cash Flow - $49.3 $9.2

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River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 1 2 3 Cash Flow - $49.3 $9.2 $19.6 (in millions) $19.2 4 $14.1 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 12.7%. Should it take on this project? Why or why not? O A. Cash Flows (millions) $49.3 -$9.2 - $19.6 - $19.2 - $14.1 + Year 1 2 3 4 O B. Cash Flows (millions) $49.3 $9.2 $19.6 $19.2 - $14.1 Year O C. Cash Flows (millions) $49.3 $19.2 $14.1 Year D. Cash Flows (millions) - $49.3 $9.2. $19.6 $19.2 $14.1 + Year The net present value of the project is $ million. (Round to three decimal places.)

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