Shannon Co

question 75

Multiple Choice

Shannon Co.is considering a project that has the following cash flow and cost of capital (r) data.What is the project's discounted payback?
R =
10) 00%
Year
0
1
2
3
4
Cash flows
−$950
$525
$485
$445
$405

• A) 1.61 years
• B) 1.79 years
• C) 1.99 years
• D) 2.22 years
• E) 2.44 years

---

Definitions:

Value of Money

The purchasing power of money, which is the quantity of goods and services that can be purchased with a unit of currency.

Federal Reserve

The central banking system of the United States, responsible for conducting the nation's monetary policy and overseeing its banking system.

Excess Money

The surplus of cash beyond what is needed for immediate expenses or investments.

Price Level

The mean value of current prices for the economy's wide array of goods and services.