7. The cash flows and Net salvage value of Project A is given the following table:

Year Cash flows Salvage Value

0 -5,800 5,800

1 2,100 2,000

2 1,400 1,200

3 1,600 800

4 1,800 300

Given the cost of capital is 10%, Calculate the NPV for its Economic Life and determine what are its economic life and physical life of Project A? (6 points)