Consider an asset with the following cash flows. C0 = -21; C1 = 9.1; C2 = 8.4; C3 = 7.7. The firm uses straight-line book depreciation. For this project; it writes off $7 per year in years 1, 2 and 3. The discount rate is 10%. Calculate the economic income in years 1, 2 and 3. a. 2.0, 3.5, 5.6

a. 2.0, 3.5, 5.6

b. 7, 7, 7

c. 2.1, 1.4, 0.7

d. 1.0, 7.1, 3.7

Consider an asset with the following cash flows. C0 = -21; C1 = 9.1; C2 = 8.4; C3 = 7.7. The firm uses straight-line book depreciation. For this project; it writes off $7 per year in years 1, 2 and 3. The discount rate is 10%. Calculate the economic depreciation in years 1, 2 and 3.

a. 10, 7, 3

b. 9, 7, 5

c. 10, 5, 5

d. 7, 7, 7