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

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River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) - $50.8 $10.3 $20.8 $20.1 $14.7 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 12.2%. 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) - $50.8 - $10.3 - $20.8 - $20.1 - $14.7 + + Year 0 1 2 3 4 O B. Cash Flows (millions) $50.8 $10.3 $20.8 $20.1 $14.7 Year 0 1 3 C. Cash Flows (millions) - $50.8 $10.3 $20.8 $20. $14.7 Year 0 1 2 3 4 OD. Cash Flows (millions) $50.8 - $10.3 - $20.8 - $20.1 $14.7 Year 0 1 2 3 4 The net present value of the project is s million. (Round to three decimal places.)

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