RiverRocks, Inc., is considering a project with the following projected free cash flows:YEAR01234CAS 1 answer below »

RiverRocks, Inc., is considering a project with the following projected free cash flows:YEAR01234CASH FLOW (millions)- $50.2$ 10.5$ 19.8$ 20.4$ 14.2The firm believesthat, given the risk of thisproject, the WACC method is the appropriate approach to valuing the project.RiverRocks’ WACC is 12.5%. Should it take on thisproject? Why or whynot?

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