3. Net present value method Aa Aa Consider the case of Underwood Corporation: Underwood Corporation is evaluating a proposed capital budgeting project that will require an initial investment of $132,000. The project is expected to generate the following net cash flows: Year 1 Year 2 Year 3 Year 4 Year Cash Flow $39,400 $50,800 $45,900 $43,400 Assume the desired rate of return on a project of this type is 996, what is the net present value of this project? -$10,073.90 $21,109.30 $26,719.70 $13,093.00 Suppose Underwood Corporation has enough capital to fund the project, and the project is not competing for funding with other projects. Should Underwood Corporation accept or reject this project? O Reject the project O Accept the project