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Copy of Given the following information and options, calculatethe optimal life of the project. Assume the cost of capital is 10%p.a. Maximum life is five years and replacement of like withlike..Year 0Year 1Year 2Year 3Year 4Year 5Net Cash Flows ($)(10,000)2,2003,0003,5002,5002,000Retirement Values ($)6,0005,0004,8003,0001,000Kindly please explain the formula used and the way to approachthis type of question.Thanks