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Suppose Cute Camel Woodcraft Company is evaluating a proposed capital budgeting project (project Beta) that...

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Suppose Cute Camel Woodcraft Company is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,225,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 Year 2 $375,000 $450,000 $475,000 $500,000 Year 3 Year 4 Cute Camel Woodcraft Company's weighted average cost of capital is 9%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV? O $3,006,208 0-$781 208 -$281.208 $937,450 Making the accept or reject decision Cute Camel Woodcraft Company'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 Suppose your boss has asked you to analyze two mutually exclusive projects-project and project Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of project l, A coworker told you that you don't need to do an NPV analysis of the projects because you already know that act A will NPV the oven arch 99+

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