Question: P 13-19 (book/static) River Rocks, Inc. is considering a project with the following projected free cash flows Year 0 1 2 3 4 Cash Flow

 P 13-19 (book/static) River Rocks, Inc. is considering a project with

P 13-19 (book/static) River Rocks, Inc. is considering a project with the following projected free cash flows Year 0 1 2 3 4 Cash Flow - $500 (in milions) $10.0 5200 $200 5150 The firm believes that giver the risk of this project, the WACC method is the appropriate approach to valuing the project. River Rocks' WACC is 12.0%. 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) - $50.0 - $100 - 5200 - $20.0 - 5150 Year 0 2 3 4 OB Cash Flows (millions) 5500 1 - $100 - $20.0 - 5200 -$15.0 Year 0 3 4 2 5200 OC Cash Flows (milions) $50,0 $100 $20.0 $150 2 3 4 Year 0 OD. Cash Flows (milions) $500 $10,0 $20,0 5200 5150 Year Click to select your answer and then click Check Answer 2 ans iemaining Clear All

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