RiverRocks, Inc., is considering a project with the following projected free cash flows: Year Cash Flow...
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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year Cash Flow (in millions) 0 -$50.9 1 2 3 4 $9.1 $19.4 $20.1 $14.5 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.2%. 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) $50.9 -$9.1 -$19.4 -$20.1 -$14.5 + + + Year 0 1 2 3 B. Cash Flows (millions) - $50.9 -$9.1 -$19.4 -$20.1 -$14.5 + + Year 0 1 2 3 4 OC. Cash Flows (millions) - $50.9 $9.1 $19.4 $20.1 $14.5 + Year 0 1 2 3 4 OD. Cash Flows (millions) $50.9 $9.1 $19.4 $20.1 $14.5 + Year 0 1 2 3 4 RiverRocks, Inc., is considering a project with the following projected free cash flows: Year Cash Flow (in millions) 0 -$50.9 1 2 3 4 $9.1 $19.4 $20.1 $14.5 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.2%. 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) $50.9 -$9.1 -$19.4 -$20.1 -$14.5 + + + Year 0 1 2 3 B. Cash Flows (millions) - $50.9 -$9.1 -$19.4 -$20.1 -$14.5 + + Year 0 1 2 3 4 OC. Cash Flows (millions) - $50.9 $9.1 $19.4 $20.1 $14.5 + Year 0 1 2 3 4 OD. Cash Flows (millions) $50.9 $9.1 $19.4 $20.1 $14.5 + Year 0 1 2 3 4
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