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

Year	0	1	2	3	4
Cash Flow (in millions)	$49.9	$9.5	$19.8	$20.8	$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

12.2%.

Should it take on this project? Why or why not?

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

A.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of -$ 49.9 in Year 0, -$ 9.5 in Year 1, -$ 19.8 in Year 2, -$ 20.8 in Year 3, and -$ 15.5 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.9

$9.5

$19.8

$20.8

$15.5

Year

0

1

2

3

4

B.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of $ 49.9 in Year 0, $ 9.5 in Year 1, $ 19.8 in Year 2, $ 20.8 in Year 3, and $ 15.5 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.9

$9.5

$19.8

$20.8

$15.5

Year

0

1

2

3

4

C.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of negative $ 49.9 in Year 0, $ 9.5 in Year 1, $ 19.8 in Year 2, $ 20.8 in Year 3, and $ 15.5 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.9

$9.5

$19.8

$20.8

$15.5

Year

0

1

2

3

4

Your answer is correct.

D.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of $ 49.9 in Year 0, -$ 9.5 in Year 1, -$ 19.8 in Year 2, -$ 20.8 in Year 3, and -$ 15.5 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.9

$9.5

$19.8

$20.8

$15.5

Year

0

1

2

3

4

The net present value of the project is

$nothing

million.(Round to three decimal places.)