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River Rocks, Inc. is considering a project with the following projected tree cash flows: Year 0 1 2 3 Cash Flow (in millions) - $503

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River Rocks, Inc. is considering a project with the following projected tree cash flows: Year 0 1 2 3 Cash Flow (in millions) - $503 59.5 $20 1 $19 3 $145 The form believes that given the risk of this project, the WACC method is the appropriate approach to valuing the project River Rocks' WACC is 129%. Should it take on this project? Wy or why not? OF SCENE A. Cash Flows milions) - 5503 - 505 - 5201 - $10.3 $14.5 Year 0 1 2 3 4 OB. Cash Flows milions) $50.3 $95 $20 1 $19.3 $14.5 Year 2 3 4 O C. Cash Flows (milions) - $50.3 $9.5 $20 1 5193 $145 2 4 Year 0 OD. Cash Flows (millions) $50.3 - $95 - $201 $193 $145 Click to select your answer(s)

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