PLEASE ANSWER ALL THE QUESTIONS CORRECTLY

2. 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 the case of Hungry Whale Electronics: Suppose Hungry Whale Electronics is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $00,000. The project is expected to generate the following net cash flows: The company's weighted average cost of capital is 7%, and project Apha has the same risk as the firm's average project. Based on the cash flows, what is project Apha's net present value (NPV)? 5955,437 The company's weighted average cost of capital is 7%, 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 (NDV)? $955,487 $1,405,487 $455,487 $1,455,487 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 foliows the Noy method, it should project Alpha. Which of the fotlowing statements best explains what it means when a project has an NPV of 50 ? When a project has an NPV of $0, the project is earning a profit of $0. A firm should reject amy project with an NPV of s0, because the project is not profitable. When a project has an NPV of \$0, the project is earning a rate of return less than the project's weighted average cost of capital, ft's OK to accept the project, as iong as the project's proft is positive