The net present value (NPV) rule is considered one of the most common and preferred criteria that gonerally lead to good investment decisions. Consider the case of Celestial Crone cosmetics: Suppose Celestal Crane Cosmetics 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: The company's weighted average cost of capital is 10%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Apha's net present value (NPV)? 51,273,566 S246,566 5660,851 5745,566 Making the accept or relect decision Celnatial Gnae Cosmeticr's decision to accept or reject project Apha is independent of its decisions on other peoled The company's weighted average cost of capital is 10%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Apha's net present value (NPV)? $1,173,566$248,566$860,851$748,566 Making the accept or reject decision Celestial Crane Cosmetics's decision to accept or reject project Apha is independent of its decisions on other projects. If the firm follows the NPV method, it should project Apha. Which of the folliowing statements best explains what it means when a project has an NPV of $0 ? When a project has an NPV of s0, the project is eaming a rate of retum equal to the project's weighted average cost of capital, It's OK to accept a project with an NPV of so, because the project is eaming the required minimum rate of return. When a project has an NPV of $0, the project is earning a rate of retum less than the project's weighted average cost of capitaL It's OK to accopt the project, as long as the project proft is positive. When a project has an NPV of s0, the project is eaming a proft of s0. A firm should reject any project with an NPV of s0, because the peoject is not profitable