1. An asset costs $247,000 and will generate cash benefits of $80,000 at the end of each year for six years for Hartford Corporation. Salvage values are $160,000, $145,000, $85,000, and $45,000 at the end of years 3, 4, 5, and 6 respectively. The required return is 5.25 percent.

Please compute the net present value, and the equivalent annuity and record these below:

Keep for 6 years ________________ ____________________

Keep for 5 years ________________ ____________________

Keep for 4 years ________________ ____________________

Keep for 3 years ________________ ____________________

When is the optimal time to abandon the investment?_____________________