Question: 1 4 River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 2 3 Cash Flow - $49.3 $10.8

1 4 River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 2 3 Cash Flow - $49.3 $10.8 $19.7 $19.1 $14.1 (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 11.8%. Should it take on this project? Why or why not? . The timeline for the project's cash flows is: (Select the best choice below.) - $10.8 - $14.1 O A. Cash Flows (millions) - $49.3 H Year 0 - $19.7 - 2 - $19.1 - 3 1 4 OB O B. Cash Flows (millions) - $49.3 $10.8 $14.1 $19.7 + 2 $19.1 + 3 Year 0 1 4 OC. Cash Flows (millions) $49.3 ( $10.8 $19.1 $14.1 $19.7 + 2 Year 0 1 3 4 OD. Cash Flows (millions) $49.3 - $10.8 - $19.7 - $19.1 - $14.1 Year 0 1 2 3 4 The net present value of the project is 5 million. (Round to three decimal places.) [ . River Rocks V take on this project because the NPV is (Select from the drop-down menus.)
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