In: Finance
The cash flows and Net salvage value of Project X is given the following table:
Year |
Cash flows |
Salvage Value |
0 |
-5,800 |
4,800 |
1 |
2,100 |
3,000 |
2 |
3,400 |
2,200 |
3 |
3,600 |
1,800 |
4 |
1,800 |
0 |
Based on the Economic Life of this project and the cost of capital is 12%, in what year should you abandoning this Project X?