RiverRocks, Inc., is considering a project with the following projected free cash flows:

The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the

project. RiverRocks' WACC is $11\mathrm{.}6\%.$ Should it take on this project? Why or why not?

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The timeline for the project's cash flows is: $($Select the best choice below.$)$

A$.$ Cash Flows $($millions

Year

B$.$ Cash Flows $($millions

Year

C$.$ Cash Flows $($millions

Year

D$.$ Cash Flows $($millions

Year

The net present value of the project is $$-{1\mathrm{.}475}^{TT}$ million. $($Round to three decimal places.$)$

RiverRocks should not take on this project because the NPV is negative $\text{'}($Select from the drop$-$down menus.$)$