Suppose Cute Camel Woodcraft Company is evaluating a proposed capital budgeting project (project Alpha) that will...

  

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Suppose Cute Camel Woodcraft 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 Year 1 Cash Flow $275,000 Year 2 $500,000 Year 3 $450,000 Year 4 $500,000 Cute Camel Woodcraft Company's weighted average cost of capital is 10%, 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)? Suppose Cute Camel Woodcraft 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 Year 1 Cash Flow $275,000 Year 2 $500,000 Year 3 $450,000 Year 4 $500,000 Cute Camel Woodcraft Company's weighted average cost of capital is 10%, 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)?