Question: Rocket Inc. is considering a project that has the following cash flow and WACC data. WACC: 10.00% Year 0 1 2 3 4 Cash flows

Rocket Inc. is considering a project that has the following cash flow and WACC data.

WACC:

10.00%

Year	0	1	2	3	4
Cash flows	-$1,000	$510	$440	$425	$405

What is the project's payback? What is the project's discounted payback? Is the project worthwhile to undertake? (Would you undertake the project?) Why?

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