Question
The terminal cash flow of a project comprises of A) Salvage value of assets only B) Return of working capital C) Return of working capital
The terminal cash flow of a project comprises of
A) Salvage value of assets only
B) Return of working capital
C) Return of working capital and Salvage value of assets only
D) Salvage value of assets including tax impact
E) Return of working capital and Salvage value of assets including tax impact
I am thinking of Option E as it seems to be closest to the formula
1.Terminal Cash Flow = After-Tax Proceeds from Disposal Change in Working Capital
2. Terminal Cash Flow = Pre-tax Sale Proceeds Tax on Disposal Change in Working Capital
Let me know if i am correct or incorrect?
Thanks!
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