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

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River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow (in millions) - $50.0 $10,0 $20.0 $20.0 $15.0 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%. Should it take on this project? Why or why not? Answer: The expected rate of return of the project is %. (Round to two places.) River Rocks (answer either "should" or "should not") take on this project because the project's expected return is (answer "greater than", "less than" or "equal to") % (round to two decimal places)

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