Question: Please help River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in
Please help
River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) - $50.5 $9.9 $20.8 $20.3 $14.9 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.6%. Should it take on this project? Why or why not? C. Cash Flows (millions) - $50.5 $20.8 $20.3 $14.9 $9.9 + 1 Year 0 2 3 4 O D. Cash Flows (millions) - $50.5 - $20.8 $20.3 - $14.9 - $9.9 + 1 Year 0 2 3 4 The net present value of the project is $ million. (Round to three decimal places.)
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