An asset requires an initial investment of $1,246. The net CFs in years 1

-

7 are 643, 974, 891, 600, 761, 764 and $791.

The interes

t rate is 0.8%. The residual (salvage) value of the asset is projected to be 18.2% of its original value. Find

the cumulative CF value thru the end of year 7 (this procedure is related to the simple payback period method).