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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 $10.1 $19.1 $19.9 $14.4 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 12.5%. Should it take on this project? Why or why not? Lasn riuws moms) 19.1 + + + Year 3 4 POU. PIU. 19.9 2 C. Cash Flows (millions) - $50.3 - $10.1 - $19.1 - $19.9 - $14.4 Year 0 1 2 3 4 st Cash Flows (millions) $50.3 $10.1 $19.9 $14.4 $19.1 + 2 Year 3 The net present value of the project is $ million. (Round to three decimal places.) Enter your answer in the answer boy and then click Check

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