Babcock Inc A)$5462
B)$57

question 10

Multiple Choice

Babcock Inc.is considering a project that has the following cash flow and WACC data.What is the project's NPV? $\begin{array}{cccc} \text { WACC } &10.00 \% \\ \text { Year: } & 0 & 1 & 2 & 3 \\\hline \text {Cash flows: } &-\$ 950 & \$ 500 & \$ 400 & \$ 300\end{array}$

• A)$54.62
• B)$57.49
• C)$60.52
• D)$63.54

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Definitions:

Gini Ratio

A benchmark for evaluating the deviation of income distribution in a group, where a value of 0 means entirely equal distribution and 1 illustrates the highest level of inequality.

Measured

Measured refers to the process of quantifying or evaluating something through systematic observation or calculation.

Income Inequality

The unequal distribution of annual or lifetime income among individuals or households in an economy.