The project has the following cash flows and salvage values and cost of capital 8%: Year...
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The project has the following cash flows and salvage values and cost of capital 8%: Year 0 1 2 3 4 Cash flows -5000 2500 3200 1600 1000 Salvage 4000 3500 1800 900 0 What are the physical life and the economic life for this project? A. Physical life of this project is 4 years with economic life of 2 years. B. Physical life of this project is 3 years with economic life of 4 years. OC. Physical life of this project is 4 years with economic life of 1 year. D. Physical life of this project is 4 years with economic life of 4 years. E. Physical life of this project is 4 years with economic life of 3 years. The project has the following cash flows and salvage values and cost of capital 8%: Year 0 1 2 3 4 Cash flows -5000 2500 3200 1600 1000 Salvage 4000 3500 1800 900 0 What are the physical life and the economic life for this project? A. Physical life of this project is 4 years with economic life of 2 years. B. Physical life of this project is 3 years with economic life of 4 years. OC. Physical life of this project is 4 years with economic life of 1 year. D. Physical life of this project is 4 years with economic life of 4 years. E. Physical life of this project is 4 years with economic life of 3 years.
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