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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 milions) -

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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 milions) - $50.8 $10.7 $20.3 $20.9 $143 The firm believes that given the risk of this project, the WACC method is the appropriate approach to valuing the project. River Rock WACC 8 12.1%. Should take on this project? Why or why noc The timeline for the project's cash flow is (Select the best choice below) A Cash Flows (millions) - $50.8 $10.7 5203 520.0 $143 1 2 3 Year 0 Cash Flows milions)-550,8 - 510.7 -520.3 - $20.9 -$143 2 3 4 Year 0 GCash Flown milions) $50.8 -$10.7 -$203 -- $200 - 5143 1 4 Year 0 Cash Flows firs) $50.00 3 5200 $10.7 5143 Yoar 0 1 4 The not prosent value of the project is $1210 million (Round to three decimal places)

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