How would the salvage value be treated in a net present value calculation?
A) Disregard the salvage
B) As a positive cash flow in the final year that the asset is used
C) As a negative cash flow in the final year that the asset is used
D) As a negative cash flow in the first year that the asset is used
Correct Answer:
Verified
Q65: The Dammon Corp. has the following
Q66: If projects are mutually exclusive
A) they can
Q67: You require an internal rate of return
Q68: In using the internal rate of return
Q69: A project requires an investment of $2,500
Q71: The _ assumes returns are reinvested at
Q72: The longer the life of an investment
A)
Q73: You buy a new piece of equipment
Q74: Assume a $6,500 investment and the
Q75: A characteristic of capital budgeting is that
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents