Answer the following question:

The net present value $($NPV$)$ rule is considered one of the most common and preferred criteria that generally lead to

good investment decisions.

Consider this case:

Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project $($project Beta$)$ that will

require an initial investment of $$3,000,000.$ The project is expected to generate the following net cash flows:

Year Cash Flow

Year $1$$$350,000$

Year $2$$$475,000$

Year $3$$$400,000$

Year $4$$$475,000$

Green Caterpillar Garden Supplies Inc.$\text{'}$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$?$

a$)-$$$1,878,785$

b$)$ $$1,366,274$

c$)-$$$1,633,726$

d$)-$$$1,233,726$