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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) - $50.4

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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) - $50.4 $10.5 $20.9 $19.1 $15.7 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valu take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) A. Cash Flows (millions) - $50.4 $10.5 $20.9 $19.1 $15.7 Year 0 1 2 3 O B. Cash Flows (millions) - $50,4 - $10.5 - $15.7 - $20.9 - 2 - $19.1 + 3 1 4 Year 0 C. Cash Flows (millions) $50.4 H Year 0 $10.5 $15.7 $20.9 + 2 $19.1 + 3 1 4 - $10.5 - $20.9 - $19.1 - $15.7 OD. Cash Flows (millions) $50.4 F Year 0 1 2 3 The net present value of the project is $ million. (Round to three decimal places.)

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