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Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of ( $ 2,750,000
Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of \\( \\$ 2,750,000 \\). The project is expected to generate the following net cash flows: Green Caterpillar Garden Supplies Inc.'s weighted average cost of capital is 7\\%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV? \\[ \\begin{array}{r} -\\$ 1,044,695 \\\\ -\\$ 1,690,149 \\\\ -\\$ 1,469,695 \\\\ -\\$ 1,069,695 \\end{array} \\] Making the accept or reject decision Green Caterpillar Garden Supplies 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 project Beta
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