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Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project ( project Alpha ) that will require an initial investment of $

Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $400,000. The project is expected to generate the following net cash flows:
Year
Cash Flow
Year 1 $375,000
Year 2 $500,000
Year 3 $400,000
Year 4 $425,000
Green Caterpillar Garden Supplies Inc.s weighted average cost of capital is 10%, 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)?

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