Suppose Blue Mamster Manulacturing Ince is fvelugeing o proposed capitai budgeting sroject (profect Beta) that aill regulre an ins a investment of $3.725.000. The project is expected to generate the fallswing net cath fomi: Blue Hamster Manufecturing Incis weighted sversge cost of capital is 8 th, and project Pcta has the same hik as the firmix trerage preject. Alsed an the cath flows, what is project Eleta's Firy? 51,391,935$51,333,06511,466,93551,891,935 Making the accept or reject decision Blue Hamster Manufarturing Inci's decivon to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NiY method, it should project Beta. Suppose your boss has asked you to analyze twa murtuslly exdusive projects-project A and project B. tloth projects require the same investment amount, and the sum of cash infiows of Project A is targer thsn the sum of cash inflowi of project B. A eeworker told you that you dont need to do an. NPV analysis of the projects because you already know that project A wit have a larger Noy than project f. Do you agree aith your coworker' statement? Yes, project A will always have the Iargest NPY, because its cash inflows are greater than project by cash infiows. No, the NPV calculation wall take into account not only the projects' cash infloms but also the biming of cash inflows and outflows. Consequently, project 8 could have a larger NF than project A, even though project A has larger cash inflems