The salvage value of new equipment should be considered when using the internal rate of return method to evaluate a project.

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The salvage value of new equipment refers to the amount of money that can be obtained by selling or disposing of the equipment at the end of its useful life. It is important to take into account this salvage value when calculating the internal rate of return (IRR) of a project, as it affects the total cash flows that the project will generate over its lifetime. By considering the salvage value, the IRR provides a more accurate estimate of the profitability and viability of the project. Therefore, it is true that the salvage value should be considered when using the internal rate of return method to evaluate a project.

The Salvage Value of New Equipment Should Be Considered When