Is it permissible to pray Salatul-Istikharah for a project whose failure is highly probable and undesirable?

The Istikhara prayer is prescribed for one who has resolved to do something, as stated in the Hadith: "When one of you is concerned about a matter, let him pray two rak'ahs." The meaning of "concerned" here is that he intended to do the matter and resolved upon it. Istikhara is prescribed after consultation and when a benefit appears in one of two matters (doing or refraining). So, if you have consulted and it appears to you that the project contains benefit and you are intent on entering into it, then perform Istikhara. But if it appears that there is no benefit in it and you desire to abandon it, then there is no need for Istikhara because you are not concerned with it.