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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 1 2 3 4 Cash Flow (in millions) $50.6 $9.6

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

Year

0

1

2

3

4

Cash Flow

(in millions)

$50.6

$9.6

$19.3

$19.6

$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?

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The net present value of the project is $ million. (Round to three decimal places.)

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