Making the accept or reject decision Hungry Whale Electronics'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. Suppose your boss has asked you to analyze two mutually exclusive projects-project A and project B. Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of project 8 . A coworker told you that you don't need to do an NPV analysis of the projects because you aiready know that project A will have a Larger NPV than project B. Do you agree with your coworker's statement? Yes, project A will always have the Largest NPV, because its cash inflows are greater than project B's cash inflows. No, the NFV calculation will take into account not only the prolects' cash inflows but also the timing of cash inflows and outfiows. Consequently, project B could have a larger NPV than project A, even though project A has larger cash inflows. No, the NPV calculation is based on percentage returns, so the size of a project's cosh nows does not affect a project's NPV. Making the accept or reject decision Hungry Whale Electronics'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. Suppose your boss has asked you to analyze two mutually exclusive projects -project A and project B. Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of project B. A cowarker told you that you don't need to do an NPV analysis of the projects because you already know that project A will have a larger NPV than project B. Do you agree with your coworker's statement? Yes, project A will always have the largest NPY, because its cash inflows are greater than project B's cash inflows. No, the NDV calculation will take into account not oniy the projects' cash inflows but also the timing of cash infiows and outhows. Consequently, project B could have a larger NPV than project A, even though project A has iarger cash inflows. No, the NPV calculation is based on percentage returns, so the sire of a projecty cash flows does not affect a projects NPV