HW 10 - The Basics of Capital Budgeting Suppose Cold Goose Metal Works Inc. is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $450,000. The project is expected to generate the following net cash flows: Year Year 1 Year 2 Cash Flow $300,000 $450,000 $400,000 $500,000 Year 3 Year 4 Cold Goose Metal Works Inc.'s weighted average cost of capital is 9%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Alpha's net present value (NPV)? O $1,167,071 $1,367,071 $997,132 O $867,071 Making the accept or reject decision Cold Goose Metal Works Inc.'s decision to accept or reject project Alpha is independent of its decisions on other projects. If the firm follows the NPV method, it should project Alpha. accept reject