Question: Please answer question 2 and 4 . Question 2 (10 points) Shannon Industries is considering a project which has the following cash flows sar Cash
Please answer question 2 and 4
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Question 2 (10 points) Shannon Industries is considering a project which has the following cash flows sar Cash Flow 0 2,0m) 3,000 3,000 .000 2 4 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? 577.68 $765.91 $1,049.80 $2,761.32 $3,765.91 Question 4 (10 points) 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? 4.00 years 4.86 years 5.23 years 6.00 years 6.34 years 0
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