Question
Campbell's Coffee Shop is trying to analyze a project that requires a $135,000 investment in fixed assets. When the project ends, those assets are expected
Campbell's Coffee Shop is trying to analyze a project that requires a $135,000 investment in fixed assets. When the project ends, those assets are expected to have an after-tax salvage value of $35,000. How should Campbell handle the $35,000 salvage value when computing the net present value of the project?
| do not include in the net present value computation | ||
| reduce the cash outflow at time zero | ||
| add to cash inflow in the final year of the project | ||
| add to cash inflow in the year following the final year of the project | ||
| prorate and add to cash inflow over the life of the project
|
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Campaign Finance Reform
Authors: Melissa M. Smith, Glenda C. Williams, Larry Powell, Gary A. Copeland
1st Edition
0739145657, 978-0739145654
