Robbins Inc. is considering a project that has the following cash 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 be rejected.
r:10.25% Year0
1
2
3
4
5
Cash flows?$1,000
$300
$300
$300
$300
$300
A. $105.89
B. $111.47
C. $117.33
D. $123.51
E. $130.01
Answer: E
You might also like to view...
A significant disadvantage of PDM and PERT is that they should not be used in times of uncertainty
Indicate whether the statement is true or false
When indirect materials are issued to production, the Raw Materials Inventory account is credited
Indicate whether the statement is true or false
Compared to a warehouse, a distribution center is
A. set up to speed the flow of products toward the consumer. B. concerned with eliminating the need for bulk-breaking. C. designed to provide more efficient use of storage space. D. a storage facility used by several intermediaries-to share costs. E. designed to eliminate all storage.
Ben Small, a sole practitioner, has just decided to form a law partnership with his lifetime friend, Harvey Steptoe. They agree to name the firm Steptoe and Small and to split all profits. Ben is also a director for a publicly-traded telecommunications firm, NewVector, Inc Ben has just learned that Harvey is lead counsel is a lawsuit against NewVector. Ben continues to serve as a board member and
participates in sensitive discussions about the lawsuit. Ben does not disclose that Steptoe is his partner. Ben's feeling is that he and Harvey are as honest as the day is long and neither would compromise their duties to NewVector and client, respectively. a. Ben has a conflict of interest and must either resign as a director or leave the partnership. b. The pledge of both Ben and Harvey is sufficient to cover the ethical issues on conflict. c. It is Harvey's obligation to take action, not Ben's. d. None of the above