Question: How would the salvage value be treated in a net present value calculation? Disregard the salvage As a positive cash flow in the final year

How would the salvage value be treated in a net present value calculation?

Disregard the salvage

As a positive cash flow in the final year that the asset is used

As a negative cash flow in the final year that the asset is used

As a negative cash flow in the first year that the asset is used

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Which of the following is not a primary source of raising money or capital for the firm? AssetsCommon stockPreferred stockBonds Given the following, what is free cash flow? Cash flow from operating...

Q:

How would the salvage value be treated in a net present value calculation? Multiple Choice As a positive cash flow in the final year that the asset is used As a negative cash flow in the first year...

Q:

How would the salvage value be treated in a net present value calculation? Multiple Choice O As a negative cash flow in the final year that the asset is used O As a negative cash flow in the first...

Q:

The typical merger premium is Multiple Choice 80-100% O 40% O 40-60% 0-20% Tobin's Barbeque has a bank loan at 8% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be...

Q:

Please answer thefour accounting questions attached. The supervisor of the county Department of Transportation (DOT) is considering the replacement of some machiner If the DOT accepts this investment...

Q:

How would the salvage value be treated in a capital budgeting analysis? As a negative cash flow ( or cash outflow ) in the year the asset is disposed of . Disregard the salvage value None of the...

Q:

Capital Project Justification It is now time to prepare a capital budget. The idea is to prepare a list of acceptable projects in which to spend in the first quarter in order to increase the value of...

Q:

How do I know the I and N? TABLE B.1* Present Value of 1 p=1/(1 + i)" Rate Periods 1% 2% 3% 4% 5% 7% 8% 9% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9803...

Q:

8 Determining the payback period LO 16-4 Bailey Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first...

Q:

Solomon Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $14,950,000; it...

Q:

Each bone in the chain of bones forming your spine is separated from its neighbors by disks of elastic tissue. What happens, then, when you jump heavily onto your feet from an elevated position? Can...

Q:

Read a post by one of your peers and respond, making sure to extend the conversation by asking questions, offering rich ideas, or sharing personal connections. Bottom of Form I'm looking into Tesla...

Q:

Ryan works as a technician at a local telecommunications company, earning a gross annual salary of $ 4 2 , 0 0 0 . After deductions for taxes and contributions to his retirement plan, his net income...

Q:

Which of these is the primary rationale for a diversified business mix? A ) To balance areas where management sees a weakness in branding or product competitiveness B ) To increase cross - portfolio...

Q:

Provide a detailed list of recommendations con-cerning how Carters might beable to increase their pool of acceptable job applicants so they can be more selective in who they hire. Your...

Q:

Assumethat Jennifer wasfaced with rising demand for cleaning services and desperately needed to hire more workers, however she faced alabour shortage. Describe strategies she might useto handle a...

Q:

Describe the steps in the human resources planning process and discussthe important elements within each that will benefit Carters Cleaning Centres. While in college, Jennifer was especially...