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The Project incomes, the beginning of the period, and the end of the period values ($ 000) are in the following table. WACC (discount rate)

The Project incomes, the beginning of the period, and the end of the period values ($ 000) are in the following table. WACC (discount rate) is 10% and the alternative return is 15%. Compute the cash flow and determine the optimum renewal period.

Periods

Project incomes En

Value at the beginning of the period

R(n-1)

end of the period

Rn

1 1 1,200 2,400 2,100
222 2 1,530 2,100 1,800
3 3 840 1,800 1,200
4 4 660 1,200 600
5 5 420 600 0

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