Suppose Celestial Crane Cosmetics is evaluating a proposed capital budgeting project project Beta) that will require an initial investment of $3,225,000. The project is expected to generate the following at cash flows: Year Cash Flow Year 1 $375,000 Year 2 425.000 Year 3 $500,000 Year 4 5425,000 Celestin Crane Cosmetics's weighted average cost of capital is 10%, and project Beta has the same risk as the firm's average project. Based on the Cashflows, what is project Beta's NPV? 51,491,013 O $1,441,911 O $1,358,087 $1,866,913 Making the accept or reject decision Celestial Crane Cosmetics's decision to accept or reject project Betals independent of its decisions on other projects. If the firm follows the NPV method, should project Beta. it . 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 coworker told you that you don't need to do an NPV analysis of the projects because you already know that project will have a larger NPV than project B. Do you agree with your coworker's statement? No, the NPV calculation wit take into account not only the projects' cash inflows but also the timing of cash inflows and outflows. Consequently, project could have a larger NPV than project A, even though project A has larger cash infions. No, the NPV calculation is based on percentage retums, so the size of a project's cash flows does not affect a project's Nov. Yes, project A will always have the largest NPV, because its cash inflows are greater than project B's cash inflows