Question: 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

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 of 2.5 years.The firm's cost of capital is 12 percent.What is the project's net present value NPV?

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