Shannon Industries is considering a project which has the following cash flows Year Cash Flow 0 1 $2,000 2 3,000 3 3,000 4 1,500 The project has a payback period of 2 5 years The firm 's cost of capital is 12 percent What is the project 's net present value NPV ...

Payback period 25 years Payback period 2 years x3000 25 2 x3000 25 x3000 25 ...

Shannon Industries is considering a project which has the following cash flows: Year Cash Flow 0..........................? 1....................$2,000

Question:

Shannon Industries is considering a project which has the following cash flows:
Year Cash Flow
0..........................?1....................$2,0002....................3,0003....................3,0004....................1,500
The project has a of 2.5 years. The firm's is 12 percent. What is the project's NPV?
Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...