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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 - $49.8 $10.1 $20.7
River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 Cash Flow - $49.8 $10.1 $20.7 $20.4 (in millions) 4 $14.9 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 12.8%. Should it take on this proje The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) $49.8 - $10.1 - $20.7 - $20.4 - $14.9 0 1 2 3 Year O B. Cash Flows (millions) $49.8 $10.1 $14.9 $20.7 1 2 $20.4 + 3 Year 0 1 4 O C. Cash Flows (millions) $49.8 - $10.1 - $20.7 - $20.4 - $14.9 Year 0 1 2 3 4 D. Cash Flows (millions) $49.8 $20.4 $14.9 $10.1 1 1 $20.7 1 2 Year 0 3 4 The net present value of the project is 5 million. (Round to three decimal places.)
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