reject/accept for the fill in blank

The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to goad 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 $2,225,0D0. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $325,000 Year 2 $50D,0DD Year 3 $475,000 Year 4 $400,000 The company'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 NPV7 O -$424,322 O -$499,322 O -$349,322 O -$824,322 Making the accept or reject decision Green Caterpillar Garden Supplies Inc.'s dedision to accept or rejedt project Beta is independent of its decisions on other projects. If the firm follows the NPV method, it should project Beta. Suppose your boss has asked you to analyze two mutually exclusive projects-project A and project B. Both projects require the sa e investment amount, and the sum of cash nflows of Project A is larger than the sum of cash inflows of project B. Aoworker told you that you dont 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 coworkers statement? O No, the NPV calculation is based on percentage retums, so the size ofa projedt's cash flows does not affect a O Yes, project A will always have the largest NPv, because its cash inflows are greater than project B's cash O No, the NPV calculation will take into account not only the projects cash inflows but also the timing of cash project's NPV. inflows. inflows and autlows. Consequently, project B could have a larger NPV than project A, even though project A has larger cash infows