DJ Enterprise is considering a project with an initial cost of P5,000 and net cash flows of P2,000 for the next three years. The expected abandonment cash inflows for years 0, 1, 2, and 3 are P5,000, P3,000, P2,500 and P 0. The enterprise's cost of capital is 10%.

Compute in three cases using Microsoft Excel

1. NPV of project if kept for three years
2. NPV of project if abandoned after Year 1
3. NPV of project if abandoned after Year 2

What should be the decision of the enterprise considering the three cases?