i have a question regarding finding the salvage value of an investment when calculating cash flow and
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Question:
i have a question regarding finding the salvage value of an investment when calculating cash flow and npv of a project.
if I have the following, how would the salvage value be determined if it were 3 year MACRs and how would it be determined if it was straight line. and how would it be determined if 3 years MACRA but was to sold for salvage year 4.
initial fixed asset investment 3,000,000
tax rate 30 %
salvage value 260,000
please show answer with calculations, so i can see how it is determined. i dont know if depreciation (book value) gets incorporated or not and if it does, then what value gets incorporated.
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