Question: q6 First dropdown is should/shouldn't. Second dropdown is postiveegative please answer aSAP RiverRocks Inc., is considering a project with the following projected free cash flows.

q6 First dropdown is should/shouldn't. Second dropdown is postiveegative please answer aSAPq6 First dropdown is should/shouldn't. Second dropdown is postiveegative please answer aSAP

RiverRocks Inc., is considering a project with the following projected free cash flows. Year 0 4 1 $9.6 2 3 $20.6 $19.7 Cash Flow (in millions) -$49.5 $14.4 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks's WACC is 12.4%. Should it take on this project? Why or why not? A. Cash flow (millions) $49.5 $9.6 $20.6 $14.4 + 1 + 2 $19.7 + 3 -$19.7 Year 0 4 B. Cash flow (millions) - $49.5 - $9.6 - $20.6 - $14.4 Year 0 1 2 4 3 $19.7 O C. Cash flow (millions) - $49.5 $9.6 $20.6 $14.4 Year 0 1 2 4 3 -$19.7 D. Cash flow (millions) $49.5 - $9.6 - $20.6 - $14.4 Year 0 1 2 3 4 The net present value of the project is $ million. (Round to two decimal places.) RiverRocks take on this project because the NPV is (Select from the drop-down menus.) Time Remaining: 00:57:03 Next

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