3. Robbins Inc. is considering a project that has the following cash flows and cost capital (r) data. What is the project's NPV? Note that if project's expected NPV is negative, it should be rejected. r= 10.25% Year Cash Flows 1000 300 300 300 1 4 300 300 A. 111.47 В. 117.33 с. 123.51 D. 130.01

3. Robbins Inc. is considering a project that has the following cash flows and cost capital (r) data. What is the project's NPV? Note that if project's expected NPV is negative, it should be rejected. r= 10.25% Year Cash Flows 1000 300 300 300 1 4 300 300 A. 111.47 В. 117.33 с. 123.51 D. 130.01

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 7P

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

3. Robbins Inc. is considering a project that has the following cash flows and
cost capital (r) data. What is the project's NPV? Note that if project's expected
NPV is negative, it should be rejected.
r= 10.25%
Year
Cash Flows
1000
300
300
300
300
300
A. 111.47
В. 117.33
С. 123.51
D. 130.01
12345

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