Suppose Cute Camel Woodcraft Company is evoluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,500,000. The project is expected to generate the following net cash flows: Cute Camel Woodcraft Company'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? $1,257,246$807,246$957,246$857,246 Suppose Cute Camel Woodcraft Company is evoluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,500,000. The project is expected to generate the following net cash flows: Cute Camel Woodcraft Company'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? $1,257,246$807,246$957,246$857,246 Cute Camel Woodcrntt Company'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 NPY? $1,257,246$807,246$957,246$857,246 Making the accept or reject decislon Cute Camel Woodcraft Company's decision to accept or reject project Bets is independent of its decisions on other projects, If the firm follaws the NpY method, it should project Beta. Suppose your boss has asked you to analyze two mutually exclusive projects-project A and project B. Both projects require the same investrvent 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 dont need to do an NPV analysis of the projects because you aiready know that project A will have a larger NPV than project B. Do you bgree with your cowarker's statement? No, the NPV caloulation is based on percentage returns, so the slze of a project's cash flows does not affect a project's NPV. No, the NPV calculation will take into account not only the projects' cash inflows but also the timing of cash inflows and outflows. Consequently, project B could have a larger NoN than project A, even though project A has larger cash inflows: Yes, project A will always have the largest NPV, because its cash inflows are greater than project b's cash inflows