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8. RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 Cash Flow(in millions) -$50.9 $9.4 $19.9 2

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8. RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 Cash Flow(in millions) -$50.9 $9.4 $19.9 2 $20.1 3 4 $14.3 The firm believes that, given the risk of this project, the WACC method is the appropriate approach valuing the project. RiverRocks' WACC is 11.7%. a. The net present value of the project is b. Should RiverRocks take on this project? million. (Round to three decimal places.)

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