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RiverRocks, Inc., is considering a project with the following projected free cash flows 0 Year Cash Flow (in millions) $50.3 1 $10.3 2 3

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RiverRocks, Inc., is considering a project with the following projected free cash flows 0 Year Cash Flow (in millions) $50.3 1 $10.3 2 3 4 $19.3 $19.3 $15.6 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.1%. Should it take on this project? Why or why not? Year OC Cash Flows (millions) -$50.3 2 -$10.3 -$19.39 -$19.3 -$15.01 Year 4 o Cash Flows (millions) -$50.3 $10.3 $19.3 $19.3 $15.6 Year The net present value of the project is $million. (Round to three decimal places)

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