Computing the net present value of the project

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Reference no: EM131354032

Rossiter restaurants is analyzing a project that requires 180,000 of fixed assets. when the period ends, those assets are expected to have an after tax salvage value of 45,000, how is the 45,000 salvage value handled when computing the net present value of the project?

a) reduction in the cash outflow at time zero

b) cash inflow in the final year of the project

c) cash inflow for the year following the final year of the project

d) cash inflow prorated over the life of the project

e) not included in the net present value

Reference no: EM131354032

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