Robbins Inc A) $10589
B) $111

question 46

Multiple Choice

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

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Definitions:

Random Variable X

A variable whose possible values are numerical outcomes of a random phenomenon, with each outcome having an associated probability.

Probability Model

A mathematical representation of a random phenomenon, defined by a sample space, events within the sample space, and probabilities associated with each event.

Fair Dice

A perfectly balanced dice where each outcome has an equal chance of occurring, ensuring unbiased results in games of chance.

Sum Greater

A condition or outcome where the total quantity or amount exceeds a specified reference point or comparison amount.