You are the financial manager of a growing firm situated in Lahore. You have recently hired a assistant manager as your firm is looking to make a lot of long term investments in the coming year. The assistant manager is pretty confused about the calculation of initial investment and terminal values of these projects . He can not recall working on this in detail in his under graduate program. 

Explain in detail how initial cost and terminal values can be estimated and what points he should be considering especially in case of taxes?