L. Net present value (NPV) Evaluating cash flows with the NPV method The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good 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 $3,225,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $350,000 Year 2 $475,000 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 fim's average project. Based on the cash flows, what is project Beta's NPV? O -$1,834,639 $1,390,361 O -$1,359,639 O-$2,201,567 Making the accept or reject decision Green Caterpillar Garden Supplies Inc.'s decision to accept or reject p other projects. If the firm follows the NPV method, it should Beta is independent of its decisions on project Beta. reject