The capital budgeting process is comprehensive and is based on certain assumptions, modeis, and benchmarks. This process oftes begns with a project analy:s, Generaby, the first step in a capital budgetrog project analysis- which occurs before amy evaluation method is appled-involves estanating the + PV method The project in oxpected to generate the following net cash flows: Cxomatam casn Hows with the NPV method The net present value (NPV) rule is considered one of the most common-and preferred criteria that peneraly lead to good minstment decsons. Consider this cinse: The project is expected to generate the following net cash flows: $455,406$1,026,487$1,755,406$855,406 $1,026,487$1,255,406$855,406 Making the ancept or reject decision Happy Dog Soap Company's decision to accept or reject project Apha is independent of is decisions on ocher projects, If the firm folows the fuy method, it nhould project Apha. Which of the follor nents best explains what it means when a project han in NPV of 50 ? When a project is not profitable. accept a project with an NPV of 50 , because the project is earning the requited minimum iate of retiom. When a project his an NPV of 50 , the groject is earming a rate of retum less than the projectr wnighted averope cost of captai ir) ox 40 ecent the progect, is long is the project's profit is positive