Now if you reduce the profit for the first of the ten years (year one only) by
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Now if you reduce the profit for the first of the ten years (year one only) by the sunk cost or loss incurred by selling the equipment for $30,000...but then the other 9 years you would still have a $60,000 profit per year...The sunk cost or loss for that first year would equal the salvage value of the old equipment minus $30,000. This amount would then be subtracted from the first year profit of $60,000. The remaining 9 years would still be $60,000 per year. In this case, what would the NPV now be?
Related Book For
Introduction To Materials Management
ISBN: 978-9386873248
8th edition
Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen
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