Shannon Industries is considering a project that has the following cash flows: project CF Year 0...
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Shannon Industries is considering a project that has the following cash flows: project CF Year 0 1 $2,000.00 2 $3,000.00 3 $3,000.00 4 $2,500.00 $3,500.00 5 the project has a payback period of 2.5 years. the firm's cost of capital is 8% a) what is the project's NPV? b) what is the project's IRR? c) would you accept the project? Justify your answer d) what is the project discounted pay-back-period? Shannon Industries is considering a project that has the following cash flows: project CF Year 0 1 $2,000.00 2 $3,000.00 3 $3,000.00 4 $2,500.00 $3,500.00 5 the project has a payback period of 2.5 years. the firm's cost of capital is 8% a) what is the project's NPV? b) what is the project's IRR? c) would you accept the project? Justify your answer d) what is the project discounted pay-back-period?
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To calculate the Net Present Value NPV and Internal Rate of Return IRR we need to discount the cash ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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