Question
RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow (in millions) $50.7 $9.4
RiverRocks, Inc., is considering a project with the following projected free cash flows:
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash Flow (in millions) | $50.7 | $9.4 | $20.5 | $20.5 | $15.5 |
The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.7%.
Should it take on this project? Why or why not?
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Passive Income Stacking Handbook How To Reach Financial Freedom Faster Regardless Of Your Age Or Situation
Authors: Mark Walters
1st Edition
0578530171, 978-0578530178
