Suppose Fuzzy Button Clothing Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $500,000. The project is expected to generate the following net cash flows: Fuzzy Button Clothing Company's weighted average cost of capital is 9%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Alpha's net present value (NPV)? $706,023 5547,220 5811,926 51,105,023 Making the accept or reject decision Fuzzy Button Clothing Company's decision to accept or reject project Alpha is independent of its decisions on other projects. If the firm follows the NPV method, it should project Apha. Which of the following 5 best explains what it means when a project has an NPV of $0 ? When a prop NPV of 50 , the project is earning a rate of return less than the project's weighted average cost of capital. Ir's oK to accept the project, as long as the project's profit is positive. When a project has an NPV of $0, the project is earning a profit of $0. A firm should reject any project with an NPV of $0, because the project is not profitable. When a prolect has an NPV of $0, the project is eaming a rate of return equal to the project's weighted average cost of capital. It's oK to accept a project with an NPV of $0, because the project is eaming the required minimum rate of return. Furzy Button Clothing Company's decision to accept or reject project Alpha is independent of its decisions on other projects, If the firm follows the NPV method, it should project Alpha. Which of the following statements best explains what it means when a project has an NPV of $0 ? When a project has an NPV of $0, the project is earning a rate of return less than the project's welohted average cost of capital. It's OK to accept the project, as lo/g as the project's profit is positive. When a project has an NPV of $0, the project is earning a profit of $0. A firm should reject any project with an NPV of $0, because the project is not profitable. When a project has an NPV of $0, the project is earning a rate of return equal to the project's weighted average cost of capital. It's OK to accept a project with an NPV of $0, because the project is earning the required minimum rate of return