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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
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 net cash flows: Year Cash Flow Year 1 Year 2 $300,000 $425,000 $475,000 $475,000 Year 3 Year 4 Celestial Crane Cosmetics's weighted average cost of capital is 9%, 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-$1,588,768 0-$1,413,768 0 - $5,113,768 0-$1,888,768
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