1 3 4 River Rocks, Inc. is considering a project with the following projected free cash flows Year 0 2 Cash Flow (in millions) -$50.1 $9.2 $20.6 $20.1 $14.6 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.6%. 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) $50.1 59 2 $20.6 - $20.1 - $14.6 1 2 3 Year 0 B. Cash Flows (millions) -550.1 $9.2 $20,6 $20.1 $14,6 0 2 3 Year C. Cash Flow (millone) $50.1 $9,2 $20.6 $20.1 $14,6 Year 1 2 D. Cash Flows (milliona) -550.1 $92 $20.6 - $20.1 - $14.6 Year 0 3 The net present value of the project is million (Round to three decimal places) AllCity, Inc., Is financed 35% with debt, 12% with preferred stock, and 53% with common stock. Its protax cost of debt is 5,8%, its preferred stock pays an annual dividend of $2.48 and is priced at $26. It has an equity beta of 1.12. Assume the riuk-free rate is 2.3%, the market risk premium is 6.7% and AllCity's tax rate is 25% Note: Assume that the firm will always be able to utilize its full interest tax shield What is its after-tax WACC? The WACC % (Round to two decimal places)