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TheProject incomes, the beginning of the period and end of the period values($ 000) are in the following table. WACC (discount rate) is 12% and
TheProject incomes, the beginning of the period and end of the period values($ 000) are in the following table. WACC (discount rate) is 12% and alternative return is 15%. Compute the cash flow to determine the optimum renewal period.
Periods Project incomes The beginning of end of the the period period En Rin-1) Rn 1 1,200 1,530 2,400 2,100 2,100 1,800 2 3 840 1,800 1,200 4 660 1,200 600 5 420 600 0
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