1. You are evaluating a project which has a useful life of 5 years. However, you suspect that the projects economic life might be different. The initial investment for the project is $5,000,000. The cash flows for the 5 years are $5 million, $1.7 million, $1.8 million, $2 million, and $2 million. The abandonment value of the project in each of the first 4 years is $4.2 million, $4 million, $3.5 million, and $2 million. The abandonment value for the 5^th year is incorporated into the cash flow given above. The required rate for this project is 15%.
   1. What is the NPV of the project, assuming its useful life?

2. Determine the economic life for the asset.

3. What is the meaning of the result in b?