Question: How would your computations in requirement 1 be affected if the special - purpose machine had a $ 1 5 comma 0 0 0 $

How would your computations in requirement 1 be affected if the special-purpose machine had a
$ 15 comma 000$15,000
terminal disposal value at the end of
1010
years? Assume depreciation deductions are based on the
$ 135 comma 000$135,000
purchase cost and zero terminal disposal value using the straight-line method. Answer briefly in words without further calculations.
Part 7
Part 8
Part 9
NPV would
increase
because the disposal value
results in an increase in the total present value of cash inflows.
Payback would
not change
because the disposal value
does not affect cash flows until the end of year 10.
IRR would
increase
because the disposal value
results in an additional cash inflow.
AARR would
increase
because the disposal value

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