2. Net present value method Consider the case of Underwood Enterprises: Underwood Enterprises is evaluating a proposed capital budgeting project that will require an initial investment of 140,000. The project is expected to generate the following net cash flows: Year 1 Year 2 Year 3 Year 4 Year Cash Flow $40,600 $51,000 $46,500 $44,400 Assume the desired rate of return on a project of this type is 9%, what is the net present value of this project? O -$10,073.90 O$18,304.10 $7,534.00 $4,725.40 Suppose Underwood Enterprises has enough capital to fund the project, and the project is not competing for funding with other projects. Should Underwood Enterprises accept or reject this project? O Reject the project O Accept the project