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Shannon Industries is considering a project which has the following cash flows: Year Cash Flow 0...

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 years. The firm’s cost of capital is 12 percent. What is

   the project’s net present value? (round your answer to the nearest $1.)

a. $ 570

b. $ 730

c. $2,266

d. $2,761

e. $3,766

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