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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 1 2 3 4 Cash Flow (in millions) -$50.3 $10.5 $20.3

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RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 1 2 3 4 Cash Flow (in millions) -$50.3 $10.5 $20.3 $19.7 $14.8 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.8%. Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) - $19.7 - $10.5 - $20.3 - $50.3 - $14,8 Year O B. Cash Flows (millions) $50.3 $10.5 $20.3 $19.7 $14.8 Year 3 4 O C. Cash Flows (millions) $50.3 - $10.5 -$20.3 - $19.7 - $14.8 Year 4 O D. Cash Flows (millions) $50.3 $10.5 $20.3 $19.7 $14.8 + + Year 3

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