Suppose Cute Camel Woodcraft Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $450,000. The project is expected to generate the following net cash flows:

YearCash FlowYear 1$350,000Year 2$450,000Year 3$425,000Year 4$450,000

Cute Camel Woodcraft Companys weighted average cost of capital is 8%, and project Alpha has the same risk as the firms average project. Based on the cash flows, what is project Alphas net present value (NPV)?

Options:

$1,067,222

$928,019

$1,113,623

$1,278,019