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

Year	0	1	2	3	4
Cash Flow (in millions)	$49.3	$10.6	$20.8	$19.7	$15.8

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

11.5%.

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 $ 49.3 in Year 0, -$ 10.6 in Year 1, -$ 20.8 in Year 2, -$ 19.7 in Year 3, and -$ 15.8 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.3

$10.6

$20.8

$19.7

$15.8

Year

0

1

2

3

4

B.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of $ 49.3 in Year 0, $ 10.6 in Year 1, $ 20.8 in Year 2, $ 19.7 in Year 3, and $ 15.8 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.3

$10.6

$20.8

$19.7

$15.8

Year

0

1

2

3

4

C.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of negative $ 49.3 in Year 0, $ 10.6 in Year 1, $ 20.8 in Year 2, $ 19.7 in Year 3, and $ 15.8 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.3

$10.6

$20.8

$19.7

$15.8

Year

0

1

2

3

4

D.The timeline starts at Year 0 and ends at Year 4. It shows cash flows of -$ 49.3 in Year 0, -$ 10.6 in Year 1, -$ 20.8 in Year 2, -$ 19.7 in Year 3, and -$ 15.8 in Year 4. The cash flow amounts are in millions of dollars.

Cash Flows (millions)

$49.3

$10.6

$20.8

$19.7

$15.8

Year

0

1

2

3

4

The net present value of the project is

$nothing

million.(Round to three decimal places.)RiverRocks

should

should not

take on this project because the NPV is

positive

negative

.