Question
The cash flows and Net salvage value of Project Y are given in the following table: Year Cash flows Salvage Value 0 -5,800 5,800 1
The cash flows and Net salvage value of Project Y are given in 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 | 100 |
Given the cost of capital is 10%, calculate the NPV for its Economic Life and determine what are the economic life and physical life of Project Y?
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The First Time Homebuyers Handbook
Authors: Dean Thompson
1st Edition
1658856112, 978-1658856119
