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Evaluating cash flows with the NPV method he net present value (NPV) rule is considered one of the most common and preferred criteria that generally

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Evaluating cash flows with the NPV method he net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to ood investment decisions. Consider this case Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,500,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000 Year 3 $500,000 Year 4 $400,000 Green Caterpillar Garden Supplies Inc.'s weighted average cost of capital is 9%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV? O -$1,128,787 O $1,371,213 O -$628,787 O -$1,354,544 Making the accept or reject decision Green Caterpillar Garden Supplies Inc.'s decision to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NPV method, it should project Beta

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