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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 -$50.6 in millions) $10.8

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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 -$50.6 in millions) $10.8 $19.1 $20.6 $15.8 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.8%. 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 (milliona) -8506 - $10.8 - $19.1 - $20.6 -$15.8 Year 0 2 3 O Cash Flows (miliona) $50.6 -$10.8 - $19.1 $20.6 - $15.a Year 2 OC Cash Flows millions) $50.6 $10,8 $20.6 1 1 $19.1 $15.8 Year 0 1 2 3 Cash Flows (millions) - $50.6 $10.8 $19.1 $20.6 $15.8 Year 0 1 2 3 4 The net present value of the project is smilion (Round to three decimal places)

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