An increase in the expected salvage value at the end of a capital budgeting project will increase the internal rate of return for that project.

Question

Quizplus · Accepted Answer

An increase in the expected salvage value at the end of a capital budgeting project will increase the future cash flows of the project. This increase in cash flows will lead to a higher internal rate of return for the project.

An Increase in the Expected Salvage Value at the End