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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow (in millions) - $50.3 A. Cash Flows (millions)
RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow (in millions) - $50.3 A. Cash Flows (millions) - $50.3 Year OB. Cash Flows (millions) - $50.3 Year OC. Cash Flows (millions) $50.3 Year The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.3%. Should it take on this project? Why or why not? 0 OD. Cash Flows (millions) Year 0 $50.3 1 $9.4 1 - $9.4 1 $9.4 1 - $9.4 1 $9.4 1 ... $19.8 2 -$19.8 2 $19.8 2 - $19.8 2 2 $19.8 $19.3 3 - $19.3 3 $19.3 3 -$19.3 3 3 $19.3 $14.3 4 - $14.3 4 $14.3 4 - $14.3 4 4 The net present value of the project is $ -1.260 million. (Round to three decimal places.) $14.3
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