A project has a first cost of ($180,000,) an estimated salvage value of ($20,000) after 6 years,

Question:

A project has a first cost of $$180,000,$ an estimated salvage value of $$20,000$ after 6 years, and other economic attributes as detailed in the table below. Unfortunately, as the end of year 4 neared, the project had to be abandoned, and the asset’s market value at that time was different from the original estimated salvage value. There was a loan to help finance the project. It was being paid back in equal annual installments (the yearly principal plus interest payment was the same). The remaining principal had to be paid at the end of year 4 when the project was stopped.

Following is the table (Note: The shaded cells would normally have something in them but have been erased for this exercise):

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