The nat present value (DV) role is considered one of the most common and preferred criteria that generally lead to good investment decisions Consider this caser Suppose Fuzzy Button Clothing 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 for: Year Cash Flow Year 1 $350,000 Year 2 125,000 Year 3 $450,000 $475,000 Puery button Clothing Company's weighted average cost of capitals and project Alpha has the same risk as the firm's average project. Based on the cash flows what is project Alishe's not present value (NPV? $1,387,799 $1,040,719 $1,262,709 $212,799 Making the accept or reject decision Fuzzy Button Clothing Company's decision to accept or reject project pho 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 307 When a project has an o's, the project is carring a rate of retum less than the project's weighted average cost of capitales OK to accept the project, as long as the project's profit is positive When a project has an NPV of so, the project is caring a profit of $0. A fim should reject any project with an NPV of $0, because the project is not profitable. When a project has an NPV of so, the project is earning a rate of retum equal to the project's weighted werage cost of capital is OK to accept a project with an NPV of so, because the project is coming the required minimum rated return