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RiverRocks, Inc., is considering a project with the projected free cash flows given below. The firm believes that, given the risk of this project, the

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RiverRocks, Inc., is considering a project with the projected free cash flows given below. 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%. Should it take on this project? Why or why not? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that finction. Do not type in mumerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. WACC NPV Take project? Because the NPV is: equirements 1 In cell E11, by using the NPV function and cell references, calculate the net present value of the cash flows ( 1 pt.). 2 In cell E12, type either Yes or No depending on whether you would take on the project ( 1 pt.). 3 In cell E13, type either Positive, Negative or Zero depending on the sign of the project's net present value ( 1 pt.)

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