Question: 14. River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions)

 14. River Rocks, Inc., is considering a project with the following

14. River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) -$50.9 $9.5 $20.6 $20.6 $14.3 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 11.6%. 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) $50.9 $9.5 $20.6 $20.6 $14.3 Year 0 1 2 3 4 O B. Cash Flows (millions) - $50.9 $9.5 $20.6 $20.6 $14.3 Year 0 1 2 3 4 OC. Cash Flows (millions) - $50.9 - $9.5 - $20.6 - $20.6 - $14.3 Year 0 1 2 3 4 OD. Cash Flows (millions) $50.9 - $9.5 - $20.6 - $20.6 - $14.3 Year 0 1 2 3 4 The net present value of the project is $ million. (Round to three decimal places.) River Rocks (1) the drop-down menus.) take on this project because the NPV is (2) (Select from (1) O should not O should (2) O negative O positive

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