Question
The cash flows and Net salvage value of Project B is given the following table: Year Cash flows Salvage Value 0 1 2 3
The cash flows and Net salvage value of Project B is given the following table: Year Cash flows Salvage Value 0 1 2 3 5,800 2,200 1,600 1,200 -5,800 2,100 1,400 1,600 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? (6 points)
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