Suppose Fuzzy Button Clothing Company is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $550,000. The project is expected to generate the following net cash flows: Year 1 375,000
Year 2 450,000
Year 3 450,000
Year 4 425,000
Fuzzy button 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?
a. 821,356.
b. 985,627.
c. 271,356.
d. 1,371,356.
Fuzzy button company's decision to accept or reject project alpha is independent of its decisions on other projects. if the firm follows the NPV method, it should (reject or accept) project alpha?

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)