Robbins Inc. is considering a project that has the followingcash 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 berejected.
| r. | 10.25% | | | | | |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | −$1,000 | $300 | $300 | $300 | $300 | $300 |
Reed Enterprises is considering a project that has the followingcash flow and cost of capital (r) data. What is the project's NPV?Note that a project's expected NPV can be negative, in which caseit will be rejected.
| r. | 10.00% | | | |
| Year | 0 | 1 | 2 | 3 |
| Cash flows | −$1,050 | $450 | $460 | $470 |
Spence Company is considering a project that has the followingcash flow data. What is the project's IRR? Note that a project'sIRR can be less than the cost of capital or negative, in both casesit will be rejected.
| Year | 0 | 1 | 2 | 3 | 4 |
| Cash flows | −$1,050 | $400 | $400 | $400 | $400 |
