Shannon Industries is considering a project which has the following cash flows:  Year Cash Flow 0 ??? 1 $2000 2 $3000 3 $3000 4 $1500 The project has a payback period of 2.5 years and the firm's cost of capital is 12 percent. What is the project's net present value (i.e., NPV)? Question 2 options:   $ 577.68   $ 765.91   $1,049.80   $2,761.32   $3,765.91

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter26: Capital Investment Analysis
Section: Chapter Questions
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Shannon Industries is considering a project which has the following cash flows: 

Year Cash Flow
0 ???
1 $2000
2 $3000
3 $3000
4 $1500

The project has a payback period of 2.5 years and the firm's cost of capital is 12 percent.

What is the project's net present value (i.e., NPV)?

Question 2 options:

 

$ 577.68

 

$ 765.91

 

$1,049.80

 

$2,761.32

 

$3,765.91

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