Question: Need help finding Net Present Value. WP 13-19 (similar to) River Rocks, Inc., is considering a project with the following projected free cash flows: 1

Need help finding Net Present Value.

Need help finding Net Present Value. WP 13-19 (similar to) River Rocks,

WP 13-19 (similar to) River Rocks, Inc., is considering a project with the following projected free cash flows: 1 2 Year Cash Flow (in millions) - $50.7 $10.4 $19.3 $19.8 $14.5 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.) O A. Cash Flows (millions) - $50.7 -$10.4 - $19.3 -$19.8 - $14.5 + Year 0 1 2 O B. Cash Flows (millions) $50.7 - $10.4 - $19.8 - $14.5 + + Year 0 1 $10.4 $19.3 $19.8 $14.5 O C. Cash Flows (millions) $50.7 Year D. Cash Flows (millions) - $50.7 1 $10.4 TT 3 $19.8 $19.3 $14.5 + Year The net present value of the project is $ million. (Round to three decimal places.)

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