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Business, 04.07.2020 14:01 Bengynease2598

Suppose Pheasant Pharmaceuticals 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 flowyear 1 $375,000year 2 $425,000year 3 $400,000year 4 $475,000Pheasant Pharmaceuticals' cost of capital is 9%, and project beta has the same risk as the firm's average project. Based on the cash flows, what is project beta's NPV?a) -$1,053,449b) -$477,874c) -$877,874d) -$1,009,555

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