Robbins Inc.is considering a project that has the following cash flow and WACC data.What is the project's NPV? Note that if a project's expected NPV is negative,it should be rejected. $$\begin{array} { l c c c c c c }
\text { WACC: } & 10.25 \% \
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline\text { Cash flows } & - \$ 1.000 & \$ 300 & \$ 300 &\$ 300 & \$ 300 &\$ 300
\end{array}$$
A) $105.89
B) $111.47
C) $117.33
D) $123.51
E) $130.01

Question

Robbins Inc.is considering a project that has the following cash flow and WACC data.What is the project's NPV? Note that if a project's expected NPV is negative,it should be rejected. $$\begin{array} { l c c c c c c } 
\text { WACC: } & 10.25 \% \
\text { Year } &  0 &  1 &  2 &  3 &  4 & 5 \
\hline\text { Cash flows } & - \$ 1.000 & \$ 300 & \$ 300 &\$  300 & \$ 300 &\$ 300
\end{array}$$
A) $105.89
B) $111.47
C) $117.33
D) $123.51
E) $130.01

Quizplus · Accepted Answer

$$\begin{array} { l c c c c c c } 
\text { WACC: } & 10.25 \% \
\text { Year } & 0 & 1 & 2 & 3 & 4 & 5 \
\hline\text { Cash flows } & - \$ 1.000 & \$ 300 & \$ 300 &\$  300 & \$ 300 & \$ 300
\end{array}$$ NPV = $130.01

Robbins Inc A) $10589 B) $111

Robbins Inc A) $10589
B) $111