Homework: Chapter 13 Homework Save Score: 0.5 of 1 pt 13 of 13 (13 complete) HW Score: 96.15%, 12.5 of 13 pts % P 13-19 (similar to) Question Help River Rocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 Cash Flow -$49.5 $9.5 $20.3 $19.3 (in millions) 4 $15.5 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.6%. Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) - $49.5 -$19.3 - $15.5 - $9.5 + - $20.3 + 2 0 1 3 4 Year B. Cash Flows (millions) - $49.5 $20.3 $19.3 $15.5 $9.5 + 1 Year 0 2 3 4 OC. Cash Flows (millions) $49.5 - $20.3 - $19.3 -$15.5 - $9.5 + 1 Year 0 2 3 4 OD. Cash Flows (millions) $49.5 $19.3 $15.5 $9.5 + 1 $20.3 + 2 Year 0 3 4 The net present value of the project is $ - 1.89 million. (Round to three decimal places.) River Rocks take on this project because the NPV is (Select from the drop-down menus.) Click to select your answer(s) and then click Check Answer. ? All parts showing Clear All Final Check