The following project along with its abandonment values is being considered by the project manager of the Taqwa Company.

Year Cash Flows Abandonment Value

0 -30,000 -

1 12,000 25,000

2 15,000 20,000

3 10,000 12,000

4 8,000 10,000

5 6,000 2,000

Using a cost of capital equal to 14 percent, determine the optimal economic life of the project.