RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 2...

 

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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 2 Cash Flow -$49.8 $20.5 (in millions) Year OB. Cash Flows (millions) The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.3%. Should it take on this project? Why or why not? 0 $49.8 Year 0 OC. Cash Flows (millions) $49.8 Year 0 OD. Cash Flows (millions) -$49.8 Year 1 $10.4 -$10.4 $10.4 1 -$10.4 2 $20.5 2 -$20,5 2 -$20.5 2 3 $19.1 3 -$19.1 3 -$19.1 3 3 $19.1 The net present value of the project is $ million (Round to three decimal places) $14.3 4 -$14.3 4 $14.3 4 -$14.3 RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 2 Cash Flow -$49.8 $20.5 (in millions) Year OB. Cash Flows (millions) The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.3%. Should it take on this project? Why or why not? 0 $49.8 Year 0 OC. Cash Flows (millions) $49.8 Year 0 OD. Cash Flows (millions) -$49.8 Year 1 $10.4 -$10.4 $10.4 1 -$10.4 2 $20.5 2 -$20,5 2 -$20.5 2 3 $19.1 3 -$19.1 3 -$19.1 3 3 $19.1 The net present value of the project is $ million (Round to three decimal places) $14.3 4 -$14.3 4 $14.3 4 -$14.3

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