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

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River Rocks, Inc., is considering a project with the following projected free cash flows: 3 4 Year 0 1 2 Cash Flow (in millions) - $50.7 $10.6 $19.8 $20.3 $14.6 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRo WACC is 12.5% Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) - $50.7 - $10.6 - $19.8 - $20.3 - $14.6 Year 0 1 2 3 4 B. Cash Flows (millions) $50.7 $10.6 $19.8 $20.3 $14.6 Year 0 1 2 4 OC. Cash Flows (millions) $50.7 -$10.6 - $19,8 - $20.3 $14,6 Year 0 2 3 4 D. Cash Flows (millions) $50.7 $10.6 $19.8 $20.3 $14.6

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