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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answerhappygod
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RiverRocks, Inc., is considering a project with the following projected free cash​ flows: Year 0 1 2 3 4 Cash Flow ​(in

Post by answerhappygod »

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.)
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