Question: 4 River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 Cash Flow - $50.5 $9.9

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

4 River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 Cash Flow - $50.5 $9.9 $19.2 (in millions) $19.7 $15.5 The firm believes that given the risk of this project, the WACC method is the appropriate approach to valuing the project, RiverRocks' WAOC 12.5%. 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 Flown (milliona) 550.6 $9.9 $19.2 $19.7 $155 Year 0 2 3 OB. Cash Flow (millions) -$60.5 - 59.9 -$19.2 - $10.7 -5155 4 Year 0 1 2 3 4 Oc Cuth Flows (ition) $505 - $0.0 - $19.2 - $19.7 - $15.5 4 Year Mo. Cash Flows (millions) - $50.5 59.9 $19.2 $10.7 $15.5 4 Year 0 The net present value of the project is $ million (Round to three decimal places)

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