Question: Leisure Incorporated is evaluating a project that requires an initial investment of $5,000 depreciated straight line over 5 years. The project has the following cash

Leisure Incorporated is evaluating a project that requires an initial investment of $5,000 depreciated straight line over 5 years. The project has the following cash flows and abandonment values are the project's book values at various points throughout its physical life. What is the time period that maximizes the NPV? The firm cost of capital is 10%.

	0	1	2	3	4	5
CASH FLOWS	($5,000)	$1,000	$2,000	$3,000	$1,500	$1,000

Group of answer choices

1 year

3 years

4 years

5 years

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