What is The net present value of the project (Round to three decimal places.) RiverRocks, Inc., is considering a project with the following projected free cash flows:Year0Cash Flow- $50.8(in millions)1$9.22$19.93$20.14$15.8The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.6%.Should it take on this project? Why or why not?

Net present value is a capital budgeting metric that tells the value added by undertaking the…

RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow (in millions) - $50.8 1 $9.2 2 $19.9 3 $20.1 4 $15.8 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. River Rocks' WACC is 11.6%. Should it take on this project? Why or why not?

RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow (in millions) - $50.8 1 $9.2 2 $19.9 3 $20.1 4 $15.8 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. River Rocks' WACC is 11.6%. Should it take on this project? Why or why not?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter14: Real Options

Section: Chapter Questions

Problem 4MC

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