3. Net present value method Consider the case of Krause Enterprises: Krause Enterprises is evaluating a proposed capital budgeting project that will require an initial investment of $108,000. The project is expected to generate the following net cash flows: Year Cash Flow $35,800 Year 1 Year 2 Year 3 $50,200 $44,100 $40,400 Year 4 Assume the desired rate of return on a project of this type is 10%. What is the net present value of this project? (Note: Do not round your intermediate calculations.) $26,759.78 $7,505.40 $15,498.90 $21,109.30 Suppose Krause Enterprises has enough capital to fund the project, and the project is not competing for funding with other projects. Should Krause Enterprises accept or reject this project? Accept the project Reject the project