A project in Canada has initial costs of $70 million, but is expected to have a low salvage value. Over the next three years, the project will generate total operating cash flows of $20 million at the end of the first year, $40 million at the end of the second year, and $30 million at the end of the first year. The required rate of return for this project is 15 percent. What is the minimum salvage value that the company needs in order to break-even on this project?

Answer rating: 100% (QA)

To calculate the minimum salvage value needed to breakeven on the project we need to find the p... View the full answer