1. Net present value (NPV) Evaluating cash flown with the Niv methed The oet present value (NPV) nile it comidered one of the most cometen and preferred criterta ehat penerally lead to good inveiement decieons Conidider this case Suppose slack Sheep Arosdcasting Company is evaluating a proposed cacital budgeting project (project Agha) that will require an intiat investment of $500,000. The project is expected to generate the followirg net cash fows: on the cash fown, what is project Nphos net present value (Nh)? 1955,232 15915,431 1306,027 11,271,027 Biack Sheep Broadcasting Company'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 following statements best explains what it means when a project has an NPV of so? When a project has an NPV of 50 , the project is earning a profit of $0. A firm should reject any project with an NPV of so, because the project is not profitable. When a project has an NPY of 50 , the project is earning a rate of return equal to the project's weighted average cost of capital. It's ok ca accept a project with an NPV of s0, because the project is earning the requlred minimum rate of return. When a project has an NPV of 30 , the project is esrning a rate of retum less than the project's weighted average cost of capitai. ir's ox te sccept the project, as long as the project's profit is positive