If all values carry a + sign, cash flow before taxes (CFBT) is represented by the equation:

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If all values carry a + sign, cash flow before taxes (CFBT) is represented by the equation:

(a) Gross income – operating expenses – depreciation – initial investment + salvage value

(b) Gross income – operating expenses – depreciation + salvage value

(c) Gross income – operating expenses – initial investment + salvage value

(d ) Gross income – operating expenses + initial investment + salvage value

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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