$2.$ You are also considering another project that has a physical life of $5$ years; that is$,$ the machinery will be totally worn out after $5$ years. However, if the project were terminated prior to the end of $5$ years, the machinery would have a positive salvage value. Here are the project$$s estimated cash flows:

Yr CF Salvage

$0($$$750,000)$ $$750,000$

$1275,000575,000$

$2425,000325,000$

$3384,000250,000$

$4350,00075,000$

$580,0000$

Using a $13\%$ cost of capital, what is the project$$s NPV and IRR if operated for the full $5$ years? Would the NPV and IRR change if the company planned to terminate the project at the end of Year $4?$ At the end of Year $3?$ At the end of Year $2?$ At the end of Year $1?$ What is the project$$s optimal $($economic$)$ life?