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1. Net present value (NPV) Evaluating cash flows with the NPV method 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 Black Sheep Broadcasting Company is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $2,225,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $325,000 Year 2 $425,000 Year 3 $425,000 Year 4 $450,000 Black Sheep Broadcasting Companys weighted average cost of capital is 10%, and project Beta has the same risk as the firms average project. Based on the cash flows, what is project Betas NPV? O -$3,176,641 O -$1,141,969 O $1,273,359 O -$951,641 Making the accept or reject decision Black Sheep Broadcasting Companys decision to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NPV method, it should project Beta.Please help answer this question including the sub-question. Answer choice for the sub-question (fill in box) is: Accept or Reject

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