Question
. Consider a project with 3 years of physical life. If the project is terminated before, the following are the cash flows (CF) and salvage
. Consider a project with 3 years of physical life. If the project is terminated before, the following are the cash flows (CF) and salvage values (SV):
Yr CF (Rs.) SV (Rs.)
0 -6000 6000
1 3000 4000
2 2700 2500
3 1500 -
Is the project acceptable at all? If yes, under what duration of economic life?
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
