2. Net present value method Aa Aa El Consider the case of Ewing Inc.: Ewing Inc. is evaluating a proposed capital budgeting project that will require an initial investment of $116,000. The project is expected to generate the following net cash flows: Year Year 1 Year 2 Year 3 Year 4 Cash Flow $37,000 $50,400 $44,700 $41,400 Assume the desired rate of return on a project of this type is 10%. What is the net present value of this project? O O O 0 $21,149.78 -$7,244.50 -$12,903.30 - $26,579.10 Suppose Ewing Inc. has enough capital to fund the project, and the project is not competing for funding with other projects. Should Ewing Inc. accept or reject this project? Accept the project Reject the project