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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow - $50.7 $9.4 $19.1

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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow - $50.7 $9.4 $19.1 $20.5 $15.4 (in millions) 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 12.6%. 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) $50.7 $9.4 $19.1 $20,5 $15.4 Year 0 1 2 3 4 B. Cash Flows (millions) - $50.7 $94 - $19.1 - $20.5 -$15.4 Year 0 2 3 4 11 OC Cash Flows (millions) $50.7 $9.4 $19.1 $20.5 - $15.4 Year 0 1 2 3 D. Cash Flows (millions) - $50.7 $9.4 $19.1 $20.5 $15.4 Year 0 1 2 The net present value of the project is s million (Round to three decimal places) N 324

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