​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

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​RiverRocks, Inc., is considering a project with the followingprojected free cash​ flows: Year 0 1 2 3 4 Cash Flow ​(in millions)−$50.8 $9.1 $19.8 $20.3 $14.1 The firm believes​ that, given therisk of this​ project, the WACC method is the appropriate approachto valuing the project.​ RiverRocks' WACC is 12.1%. Should it takeon this​ project? Why or why​ not? The timeline for the​ project'scash flows​ is: ​(Select the best choice​ below.) A. The timelinestarts at Year 0 and ends at Year 4. It shows cash flows of -$ 50.8in Year 0, -$ 9.1 in Year 1, -$ 19.8 in Year 2, -$ 20.3 in Year 3,and -$ 14.1 in Year 4. The cash flow amounts are in millions ofdollars. Cash Flows (millions)−$50.8−$9.1−$19.8−$20.3−$14.1Year01234 B. The timeline starts at Year 0 and ends at Year 4. Itshows cash flows of $ 50.8 in Year 0, $ 9.1 in Year 1, $ 19.8 inYear 2, $ 20.3 in Year 3, and $ 14.1 in Year 4. The cash flowamounts are in millions of dollars. Cash Flows(millions)$50.8$9.1$19.8$20.3$14.1 Year01234 C. The timeline startsat Year 0 and ends at Year 4. It shows cash flows of negative $50.8 in Year 0, $ 9.1 in Year 1, $ 19.8 in Year 2, $ 20.3 in Year3, and $ 14.1 in Year 4. The cash flow amounts are in millions ofdollars. Cash Flows (millions)−$50.8$9.1$19.8$20.3$14.1 Year01234D. The timeline starts at Year 0 and ends at Year 4. It shows cashflows of $ 50.8 in Year 0, -$ 9.1 in Year 1, -$ 19.8 in Year 2, -$20.3 in Year 3, and -$ 14.1 in Year 4. The cash flow amounts are inmillions of dollars. Cash Flows(millions)$50.8−$9.1−$19.8−$20.3−$14.1 Year0123
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