When compiling the relevant cash flows for a project,the aftertax value of any asset sold any time during the life of the project should be treated as:

Question

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The aftertax value of any asset sold during the life of the project should be treated as a cash flow in the year of sale. This is because the value of the asset is realized when it is sold and the cash is received. It is not a cash outflow at Time 0 because it occurs during the life of the project and is not related to the initial investment. It is not a change in net working capital because the asset sold is not part of the operating cycle of the project. It is not a reduction in the cash flow for Time 0 because it is not related to the initial investment, and it is not a cash flow in the last year of the project because it could be sold at any time during the life of the project.

When Compiling the Relevant Cash Flows for a Project,the Aftertax