Question
The cash flows and net salvage of Project X is given the following table: Year Cash Flow Salvage Value 0 -5800 4800 1 2100 3000
The cash flows and net salvage of Project X is given the following table:
Year Cash Flow Salvage Value
0 -5800 4800
1 2100 3000
2 3400 2200
3 3600 1800
4 1800 0
Given the cost of capital is 12% , in what year should you abandon this project x?
(Please provide the equation to enter NPV to calculate in excel. How to incorporate Salvage value in NPV calc? )
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
