Question
The cash flows and Net salvage value of Project B 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 B is given the following table:
| Year | Cash flows | Salvage Value |
| 0 | -5,800 | 5,800 |
| 1 | 2,100 | 2,200 |
| 2 | 1,400 | 1,600 |
| 3 | 1,600 | 1,200 |
| 4 | 1,800 | 200 |
Given the cost of capital is 8%, Calculate the NPV for its Economic Life and determine what are its economic life and physical life of Project B?
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Forecasting And Predictive Analytics With Forecast X
Authors: Barry Keating, J. Holton Wilson, John Solutions Inc.
7th International Edition
1260085236, 9781260085235
