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A firm is analyzing a project that requires $180,000 of fixed assets. When the project ends, those assets are expected to have an after-tax salvage
A firm is analyzing a project that requires $180,000 of fixed assets. When the project ends, those assets are expected to have an after-tax salvage value of $45,000. How is the $45,000 salvage value handled when computing the net present valueof the project?
Reduction in the cash outflow at time zero. Cash inflow in the final year of the project. Cash inflow for one year after the end. Cash inflow prorated over the life of the project. Not included in the net present value Step by Step Solution
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