The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this case: Suppose Happy Dog Soap Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initsal investment of $600,000. The project is expected to generate the following net cash flows: Happy Dog Soap Company's weighted average cost of copitat is 10%, and project Apha has the same risk as the frm's average project. Based on the cash fows, whot is project Alpha's net present value (NPV)? $836,696 51,297,247 597,247 3697,247 Making the accept or reject decision Happy Dog Soap Company's decision to accopt 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 mears when a project has an NPV of $0 ? When a project has on NPV of $0, the project is earning a profit of $0. A firm should reject amy 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 less than the project's weighted average cost of capital, It'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 rate of return equal to the project's weighted average cost of capital. It's OK to accept a project with an NPV of 50 , because the project is earning the required minimum rate of return. The net present value (NPV) rule is considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this case: Suppose Happy Dog Soap Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initsal investment of $600,000. The project is expected to generate the following net cash flows: Happy Dog Soap Company's weighted average cost of copitat is 10%, and project Apha has the same risk as the frm's average project. Based on the cash fows, whot is project Alpha's net present value (NPV)? $836,696 51,297,247 597,247 3697,247 Making the accept or reject decision Happy Dog Soap Company's decision to accopt 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 mears when a project has an NPV of $0 ? When a project has on NPV of $0, the project is earning a profit of $0. A firm should reject amy 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 less than the project's weighted average cost of capital, It'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 rate of return equal to the project's weighted average cost of capital. It's OK to accept a project with an NPV of 50 , because the project is earning the required minimum rate of return