You are also considering another project that has a physical life of $3$ years$$that is$,$ the machinery will be totally worn out after $3$ years. However, if the project were terminated prior to the end of $3$ years, the machinery would have a positive salvage value. Here are the project$$s estimated cash flows:

Year $0123$

Initial Investment and Operating Cash Flows $$$$5,0002,1002,0001,750$

End$-$of$-$Year Net Salvage Value $$5,0003,1002,0000$

Using the $10\%$ cost of capital, what is the project$$s NPV if it is operated for the full $3$ years? Would the NPV change if the company planned to terminate the project at the end of Year $2?$ At the end of Year $1?$ What is the project$$s optimal $($economic$)$ life? Give precise formulas, and excel formulas