3) "Economic life - 1" ABC Company is evaluating a new project. The project requires an initial investment of $22,500, and it is annual operating cash flows is expected to be $6,250 per year. The project has a 5-year expected physical life. The expected ending cash flows if the project is terminated at the end of a given year are given below. YR 1 YR 2 YR 3 YR 4 YR 5 $6,250 $6,250 $6,250 $6,250 $6,250 Operating Cash Flow Ending Cash Flow $17,500 $14,000 $11,000 $5,000 $0 Should the firm operate the project until the end of its 5-year life, or if not, what is the optimal economic life? (Assume that the company's cost of capital is 10%)