ch 11. Assignment - The Basics of Capital Budgeting Ats Meget 1. Net present value (NPV) Evaluating cash flows with the NPV method The net present wait (nevnice is considered one of the most common and preferred osteria that generally lead to good vestmare decision Consider the case Support Cold Cobre Metal Works Inc in evaluating a proposed capital budgeting project project Deta) that wil rural, investment of $2.225.000. The project is expected to generate the following net cathow Year Cash Flow $375.000 Year $400,000 Year 400,000 3450,000 Cold Goose Metal Working weighted average cost of capital and project eta has the same the forms were pred on the cash lows, what is act Beta's NV O $916,627 O $456,627 O $1.099,952 O $516,627 Making the accept or reject decision Cold Goose Metal Worker's demon to accept or reject project Buta a dependent of its demons on other projects. If the follows the NPV method, it should projects Suppose your boss has deed you to two mutually durive propects-project and project both promoure the same investment amount and the sum of cash row of Project Astarothan the sum of cows from you that you don't need to do any of the project because you ready know that propeta will have a larger than pre with your coworker's statement ON, the NPV albion will take into account not only the projects cash rows but also the tong shows and Consequently, project could have a larger than project even though project has large chow No, the Nation is based on percentage return, to the size of a projects can we does not affect a project ex Yes, yet A will always have the largest becauses casos greater than protectos Grade it New Save & Continue Cornwag