RiverRocks, Inc., is considering a project with the following
projected free cash flows:
Year
0
1
2
3
4
Cash Flow
(in millions)
−$50.8
$9.1
$20.4
$20.8
$15.8
The firm believes that, given the risk of
this project, the WACC method is the appropriate approach to
valuing the project. RiverRocks' WACC is 12.9%.
Should it take on this project? Why or why not?
The net present value of the project is - ? million. (Round to
three decimal places.)
RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow (in
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