2. Net present value (NPV) Evaluating cash flows with the NPV method The net present value (NPV) rule is considered one of the most common and praferred criteris that generally lend to good investmest decieions. Consider the case of Blue Hamster Manufacturing Inc,t Suppose Blue Hamster Manufacturing Inc, Is evaluating a propored capital budgeting project (nroject Alpho) that wa require an initial invesiment of s400,000. The project is expected to generate the following net cash fiows: The company's weighted average cost of captal is 700 , and profect Alpha has the same ripk as the firm's average progect. Based on the cach flowa. whot is project Alphas net present value (faP)? 51,077,416 31,527,416 51,292,899 $1,502,416