Question: From the data below, identify both the a) economic life and b) physical life and then decide whether the project can accept or not. If
From the data below, identify both the a) economic life and b) physical life and then decide whether the project can accept or not. If the project can accept, explain why you can accept the project. How many years will you operate for the maximum wealth? (20 points)
Project (Cost of capital: 10%)
|
| CFs | Salvage Value |
| 0 year | -$2,000 | $2,000 |
| 1 year | $1,000 | $1,000 |
| 2 year | $800 | $500 |
| 3 year | $800 | $200 |
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