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)? The Seattle Corporation has been presented with an investment opportunity which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. Assume cash flows occur evenly during the year, 1/365th each day. What is the payback period for this investment? A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Project D described below is 10 percent. Assuming that the projects are independent, which project(s) should the company accept? Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200. Project B has an internal rate of return of 9.5 percent. Project C requires an up-front expenditure of $1,000,000 and has a profitability index of 0.85. Project D requires an up-front expenditure of $200,000 and generates a net present value of negative $200. None of the projects above should be accepted. The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $30,000 per year in Years 1 through 4, $35,000 per year in Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. What is the NPV for this investment? $135,984 $ 18,023 $219,045 $51,138 $92,146 Which of the following capital budgeting evaluation techniques will always produce the correct project choice, for both independent and mutually exclusive projects? NPV IRR Payback Period Profitability Index None of the above will always indicate the best project choice. You are offered an investment with returns of $ 1,391 in year 1, $ 3,405 in year 2. and $ 4,191 in year 3. The investment will cost you $ 8,676 today. If the appropriate Cost of Capital is 6.4 %, what is the Net present Value of the investment? Your