An asset costs $165,000 and will generate cash benefits of $42,000 at the end of each year for six years. Salvage values are $78,000, $58,000, $48,000, $38,000 and $18,000 at the end of years 2, 3, 4, 5 and 6 respectively. The required return is 5.5 percent. Assuming that this asset can be replicated.

Equivalent annuity if abandoned after 6 years ______________

Equivalent annuity if abandoned after 5 years ______________

Equivalent annuity if abandoned after 4 years ______________

Equivalent annuity if abandoned after 3 years ______________

Equivalent annuity if abandoned after 2 years ______________

When is the optimal time to abandon the investment?