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River Rocks, Inc. is considering a project with the following projected free cash flows Year 0 1 2 3 Cash Flow (in millions) - $50

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River Rocks, Inc. is considering a project with the following projected free cash flows Year 0 1 2 3 Cash Flow (in millions) - $50 8 $97 $19.9 $19.4 4 $15.4 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 12.45 Should take on this project? Why The timeline for the project's cash flows is (Select the best choice below) O A Cash Flows millions) - 5500 59.7 $199 $19.4 $15.4 Year 0 3 O B. Cash Flows (millions) 550.8 59.7 -5199 -9194 - $154 Year River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow - $50.8 (in millions) $9.7 $19.9 $19.4 $15.4 The firm believes that given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is O C. Cash Flows (millions) $50,8 $9.7 $19.9 $19.4 $15.4 Year 0 1 2 3 4 OD. Cash Flows (millions) $50.8 - $9.7 - $19.9 - $19.4 -$15.4 Year 2 3 The net present value of the project is $million (Round to three decimal places.) RiverRocks take on this project because the NPV is (Select from the drop-down menus)

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