Evaluating cash flows with the NPV method The nef present wahe (NPV) rute is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consiber this case: Suppose Cold Goose Metal Warks Ine, is evaluating a propesed capital budpeting peoject (project Ajpha) that will recuire an initial investment of $500,000. The project as expected to generate the folowing net cash flans: Cold Coose Metal Works Inc. I weighted average cost of capital is 8%, and project Alpha has the same rask as the firm: average project. Based on the cash flows, what is project Alpha's net present value (Nip)) 31,238,347 $935,349 5313,347 $813,347 Making the accept or reject decision Cold Goose Metal Warks Ins. I decision to accept or reject project Alpha is indeoendent of as decisions on other greiects. If the firm folows the Now method, it should project Alpha. Which of the following staterents best explains what in means when a project has an hPV of so? When a project has an NPV of $0, the project is eaming a rate of return less than the project's weighted average cost of capital. It's OK. to accept the project, as long as the praject's peofit is posivive. When a project has an NPV of $0, the project is earning a proft of $0. A firm should reject ary preject with an NDV of $0, because the project is not srofitable