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Robbins Inc. is considering a project that has the following cash flow and cost of capital...

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Finance

Robbins Inc. is considering a project that has the followingcash flow and cost of capital (r) data. What is the project's NPV?Note that if a project's expected NPV is negative, it should berejected.

r.10.25%
Year

0

1

2

3

4

5

Cash flows

?$1,000

$300

$300

$300

$300

$300

a. $117.33
b. $105.89
c. $123.51
d. $130.01
e. $111.47

Reed Enterprises is considering a project that has the followingcash flow and cost of capital (r) data. What is the project's NPV?Note that a project's expected NPV can be negative, in which caseit will be rejected.

r.10.00%
Year

0

1

2

3

Cash flows

?$1,050

$450

$460

$470

a. $112.28
b. $92.37
c. $106.93
d. $101.84
e. $96.99

Spence Company is considering a project that has the followingcash flow data. What is the project's IRR? Note that a project'sIRR can be less than the cost of capital or negative, in both casesit will be rejected.

Year

0

1

2

3

4

Cash flows

?$1,050

$400

$400

$400

$400

a. 15.61%
b. 21.20%
c. 14.05%
d. 19.27%
e. 17.34%

Answer & Explanation Solved by verified expert
4.3 Ratings (688 Votes)
NPV PV of Cash Inflows PV of Cash OutflowsPart 1OPtion D    See Answer
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