Question
Assume that a projects cash flows are represented by a series A , and its salvage values by a series B , running over the
Assume that a projects cash flows are represented by a series A, and its salvage values by a series B, running over the physical life of the project. In calculating the optimal economic life of a project, one must construct a new series of cash flows by
A) adding A and B for each year of the physical life of the project
B) taking B until the year before termination and adding A and B in the year of termination
C) subtracting B from A for each year of the physical life of the project
D) adding A and B until the year before termination and B alone in the year of termination
E) taking A until the year before termination and adding A and B in the year of termination
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