RiverRocks, Inc., is considering a project with the following projected free cash flows: Year Cash Flow (in millions) 0 -$50.8 1 2 3 4 $10.8 $19.5 $19.3 $14.2 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.5%. Should it take on this project? Why why not? The timeline for the project's cash flows is: (Select the best choice below.) OA. Cash Flows (millions) $50.8 -$10.8 - $19.5 - $19.3 - $14.2 Year 0 1 2 3 4 B. Cash Flows (millions) -$50.8 $10.8 $19.5 $19.3 $14.2 Year 0 1 2 3 4 OC. Cash Flows (millions) $50.8 $10.8 $19.5 $19.3 $14.2 Year 0 1 2 3 4 OD. Cash Flows (millions) - $50.8 - $10.8 - $19.5 - $19.3 - $14.2 Year 0 1 2 3 4 The net present value of the project is $ million. (Round to three decimal places.)

RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 1 3 4 Cash Flow -$50.3 $10.3 $19.3 $19.5 $14.1 (in millions) The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 11.8%. 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) - $50.3 $10.3 $19.3 $19.5 $14.1 Year 1 2 3 4 O B. Cash Flows (millions) -$50.3 $10.3 - $19.3 - $19.5 - $14.1 Year 1 3 4 O C. Cash Flows (millions) $50.3 $10.3 $19.3 - $19.5 - $14.1 Year 1 O D. Cash Flows (millions) $50.3 $10.3 $19.3 $19.5 $14. Year 1 2 3 4 The net present value of the project is S million. (Round to three decimal places.) RiverRocks take on this project because the NPV is (Select from the drop-down menus.)

RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 0 Cash Flow - $49.6 (in millions) 1 $10.5 2 $19.4 3 $19.4 4 $14.6 The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.9%. Should it take on this project? Why or why not?

Howell Petroleum inc, is trying to evaluate a generation project with the following cash flows: Year 0:  -52,000,000 Year 1: 74,000,000 Year2: -12,000,000 If the project rate of return is 12% on its investments, should it accept this project? Why? Compute the IRR for this project. How many IRR are there? Using the IRR decision rule, should the company accept the project? What’s going on here?