Question: Evaluating cash flows with the NPV method Thenet present value (NPV) ruleis considered one of the most common and preferred criteria that generally lead to

Evaluating cash flows with the NPV method Thenet present value (NPV) ruleis considered one of the most common and preferred criteria that generally lead to good investment decisions. Consider this case: Suppose Fuzzy Button Clothing Company is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,750,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2450,000Year 3475,000Year 4450,000 Fuzzy Button Clothing Company's weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV? (Note: Do not round your intermediate calculations.) A -$4,059,142 B. -$1,309,142 C. $1,440,858 D. -$859,142

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