Shannon Co. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 $525 $485 $445 $405 Cash flows -$950 2.44 years 1.79 years 2.22 years 1.61 years 1.99 years

Shannon Co. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 0 1 2 3 4 $525 $485 $445 $405 Cash flows -$950 2.44 years 1.79 years 2.22 years 1.61 years 1.99 years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Shannon Co. is considering a project that has the following cash flow and WACC
data. What is the project's discounted payback?
WACC: 10.00%
Year
0
1
2
3
4
Cash flows -$950 $525 $485 $445 $405
2.44 years
1.79 years
2.22 years
1.61 years
1.99 years

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