1. Business
2. Finance
3. Capital Budgeting
4. 31342

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

1. Shane industries is considering a project which has the following cash flows:
Year Cash flow
0 ($5,000)
1 ?
2 $2,000
3 $3,000
4 $3,000
5
The project has a payback period of 2.5 years. The firm's discount rate is 10%. What are the project's Net Present Value (NPV) and Internal Rate of Return (IRR)?

See attached file for complete description of the problem.