HW 9 Support Black Sheep Broadcasting Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initial Investment of $400,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $325.000 Year 2 $400,000 Year $425,000 Year 4 $450,000 Sheep Broadcasting Company's weighted average cost of capital is 9%, and project Alpha has the same risk as the firm's average project. Based on the cash flows, what is project Alpha's net present value (NPV)? $1,058.167 $1,306,606 5681,806 Making the accept or reject decision Nashees broadcasting Company's decision to accept or reject project Alphas independent of its decisions on other projects. If the firm follows the NPV method, it should project Alpha Which of the following statements best explains what it means when a project has an NPV of 907 when a project has an NPV of so, the project is caring a rate of return less than the project's weighted average cost of capital, its ok to acct the project, as long as the project's profit is positive When project has an NPV of 80, the project is earning profk of 80. A rom should reject any project with an NPV of so, because the project is not profitable When a project has a NPV of so, the project is earning of return to the project's weighted average cost of capital's OK to et project with an NPV e 10, because the project is earning the recured minimum rate of return Grade It Now Sava Conti