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

Year	0	1	2	3	4
Cash Flow (in millions)	negative $ 50.8$50.8	$ 9.3$9.3	$ 19.6$19.6	$ 19.3$19.3	$ 14.1$14.1

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

12.6 %12.6%.

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

The net present value of the project is

$negative 4.7914.791

million.(Round to three decimal places.)

RiverRocks

should not

should

should not

take on this project because the NPV is

negative

negative

positive

. (Select from the drop-down menus.)