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RiverRocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) $49.5 $10.7

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RiverRocks, Inc., is considering a project with the following projected free cash flows: 0 1 2 3 4 Year Cash Flow (in millions) $49.5 $10.7 $20.7 $20.1 $15.7 The firm believes that given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.2%. Should it take on this project? Why or why not? CIR Year 0 1 2 3 O D. Cash Flows (millions) $49.5 - $10.7 - $20.7 - $20.1 -$15.7 Year 0 1 2 3 4 The net present value of the project is million. (Round to three decimal places.)

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