Question: Boyd Leasing is analyzing a project that requires purchasing $ 2 1 0 , 0 0 0 of new fixed assets. When the project ends,

Boyd Leasing is analyzing a project that requires purchasing $210,000 of new fixed assets. When the project
ends, those assets are expected to have an aftertax salvage value of $22,000. How is the $22,000 salvage
value handled when computing the net present value of the project?
Excluded from the net present value calculation
Reduction in the cash outflow at Time 0
Cash inflow for the year following the final year of the project
Cash inflow prorated over the life of the project
Cash inflow in the final year of the project
Boyd Leasing is analyzing a project that requires purchasing $210,000 of

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