Celestial Crane Cosmeticss weighted average cost of capital is 9%, and project Alpha has the same risk as the firms average project. Based on the cash flows, what is project Alphas net present value (NPV)? (Note: Do not round your intermediate calculations.) $836,143 $727,081 $1,227,081 $872,497

Which of the following statements best explains what it means when a project has an NPV of $0?

When a project has an NPV of $0, the project is earning a profit of $0. A firm should reject any project with an NPV of $0, because the project is not profitable.

When a project has an NPV of $0, the project is earning a rate of return equal to the projects weighted average cost of capital. Its OK to accept a project with an NPV of $0, because the project is earning the required minimum rate of return.

When a project has an NPV of $0, the project is earning a rate of return less than the projects weighted average cost of capital. Its OK to accept the project, as long as the projects profit is positive.