Suppose Cold Goose Metal Works Inc. 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	Cash Flow
Year 1	$325,000
Year 2	$400,000
Year 3	$425,000
Year 4	$400,000

A. Cold Goose Metal Works Inc.s weighted average cost of capital is 8%, and project Beta has the same risk as the firms average project. Based on the cash flows, what is project Betas NPV?

a. -$1,324,748

b. -$1,724,748

c. -$4,724,748

d. -$1,399,748

B. Cold Goose Metal Works Inc.s decision to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NPV method, it should BLANK project Beta.

a. accept

b. reject