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reconsider the data from problem 4. management has expressed some concern over the life of the project and the impact of possible early termination. As
reconsider the data from problem 4. management has expressed some concern over the life of the project and the impact of possible early termination. As a result you have developed additional data based on three possible salvage value scenarios. in each case, the possible salvage values progress from 70000 at EOY 0 to 2000 at EOY 6. Case 1 is based on a schedule provided by the vendor as shown below. case 2 is based on a gradient series decline.
EOY | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
NCF | -70000 | 30000 | 30000 | 30000 | 30000 | 30000 | 30000 |
Vendor SV | 70000 | 50000 | 30000 | 20000 | 10000 | 5000 | 2000 |
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