In the net present value method,the disposal value of a long-term asset at the end of its useful life is considered to be a ________.
A) cash outflow at time zero
B) cash inflow at time zero
C) cash outflow in the year of disposal
D) cash inflow in the year of disposal

Question

Quizplus · Accepted Answer

The disposal value of a long-term asset at the end of its useful life is considered to be a cash inflow in the year of disposal, as it represents the amount of cash received from selling the asset.

In the Net Present Value Method,the Disposal Value of a Long-Term