1. The cash flows and Net salvage value of Project X is given the following table:

Year	Cash flows	Salvage Value
0	-5,800	5,800
1	2,100	3,200
2	1,400	2,600
3	1,600	2,200
4	1,800	150

Given the cost of capital is 8.5%, Calculate the NPV for its Economic Life and determine what are its economic life and physical life of Project X?

Answer rating: 100% (QA)

Cash flows of the project can be summarized as below Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 NPV Calculation 0 58... View the full answer