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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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