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please help this is for a final grade! TAP Assessment Questions 2 The present Video Search this TI0:07 Consider this case: Suppose Celestial Crane Cosmetics
please help this is for a final grade!
TAP Assessment Questions 2 The present Video Search this TI0:07 Consider this case: Suppose Celestial Crane Cosmetics is evaluating a proposed capital budgeting project (project Beta) that will require an initial Investment of $3,000,000. The project is expected to generate the following net cash flows: Year Year 1 Year 2 Year 3 Year 4 Cash Flow $325,000 $500,000 $400,000 $475,000 Celestial Crane Cosmetics's weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV? O-$1,603,733 -$1,203,733 -$1,103,733 $1,396,267 Making the accept or reject decision Celestial Crane Cosmetics's decision to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NP method, it should reject project Beta Step by Step Solution
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