[Daniel]

NPV was negative for the first 4 years, from the fifth year NPV became positive. The b part of question 5 said to compute for the foreseeable future so I computed for year 5 and 6. The asset had a useful life of 10 years, although the first 4 years gave a negative NPV but from the 5th year NPV became positive, so in question b, you accept the project.

[Author]

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