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River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) --

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River Rocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) -- $50.3 $9.9 $20.4 $20.5 $15.4 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.4%. Should it take on this project? Why or why not? ... A. Cash Flows (millions) - $50.3 $9.9 $20.5 $15.4 $20.4 - 2 Year 0 3 4 O B. Cash Flows (millions) - $50.3 - $9.9 $20.4 $20.5 -$15.4 Year 0 1 2 3 4 O C. Cash Flows (millions) $50.3 - $9.9 - $20.4 - $20.5 $15.4 Year 0 1 2 3 4 OD. Cash Flows (millions) $50.3 $9.9 $20.4 $15.4 $20.5 + 3 Year 0 2 The net present value of the project is million (Round to three decimal places.)

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