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The cash flows and Net salvage value of Project A is given the following table: Year Cash flows Salvage Value 0 -5,800 5,800 1 2,100

The cash flows and Net salvage value of Project A is given the following table: Year Cash flows Salvage Value 0 -5,800 5,800 1 2,100 2,000 2 1,400 1,200 3 1,600 800 4 1,800 300

Given the cost of capital is 10%, Calculate the NPV for its Economic Life and determine what are its economic life and physical life of Project A?

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